All of the following are directly affected by the cost flow assumption used for inventory except?
A)Net income
B)Inventory on the balance sheet
C)The current ratio
D)Cash flow

Question

Quizplus · Accepted Answer

The cost flow assumption affects net income, inventory valuation, and the current ratio, but it does not directly affect cash flow, as cash flow is concerned with actual cash transactions, not accounting assumptions.

All of the Following Are Directly Affected by the Cost