Acc 304 Test Bank Answers

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ACC 304 Strayer Test Bank All Chapters included with answers. Purchase here: Need Help with Final Exams? Midterm Exams? Visit and search from a large catalog of midterm and final exams. We have assignments, quizzes, homework problems and test banks for many Strayer courses. We provide top notch homeworkhelp assistance for Strayer University Students. For Final Exams visit: For Midterm Exams visit: For Test Banks visit: For Complete Classes visit: For any further assistance, send us an email at:…show more content…
Which of the following is not considered an advantage of LIFO when prices are rising? a. The inventory will be overstated. b. The more recent costs are matched against current revenues. c. There will be a deferral of income tax. d. A company's future reported earnings will not be affected substantially by future price declines. 82. Which of the following is true regarding the use of LIFO for inventory valuation? a. If LIFO is used for external financial reporting, then it must also be used for internal reports. b. For purposes of external financial reporting, LIFO may not be used with the lower of cost or market approach. c. If LIFO is used for external financial reporting, then it cannot be used for tax purposes. d. None of these. 83. If inventory levels are stable or increasing, an argument which is not an advantage of the LIFO method as compared to FIFO is a. income taxes tend to be reduced in periods of rising prices. b. cost of goods sold tends to be stated at approximately current cost on the income statement. c. cost assignments typically parallel the physical flow of goods. d. income tends to be smoothed as prices change over time. MULTIPLE…show more content…
$9,213. c. $9,234. d. $9,324. 99. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar? a. $9,454. b. $9,213. c. $9,234. d. $9,324. Use the following information for questions 100 and 101. Niles Co. has the following data related to an item of inventory: Inventory, March 1 100 units @ $2.10 Purchase, March 7 350 units @ $2.20 Purchase, March 16 70 units @ $2.25 Inventory, March 31 130 units 100. The value assigned to ending inventory if Niles uses LIFO is a. $290. b. $276. c. $273. d. $292. 101. The value assigned to cost of goods sold if Niles uses FIFO is a. $290. b. $276. c. $862. d. $848. 102. Emley Company has been using the LIFO method of inventory valuation for 10 years, since it began operations. Its 2012 ending inventory was $60,000, but it would have been $90,000 if FIFO had been used. Thus, if FIFO had been used, Emley's income before income taxes would have been a. $30,000 greater over the 10-year period. b. $30,000 less over the 10-year period. c. $30,000 greater in 2012. d. $30,000 less in 2012. Use the following information for questions 103 through

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