Which inventory method gives the most realistic net income?
A) FIFO, because it uses cost in the order in which they were incurred
B) LIFO, because it includes the most recent costs in cost of goods sold
C) Average-cost, because it averages old and recent costs
D) The answer depends on whether prices are rising or falling.
Correct Answer:
Verified
Q59: Net sales is computed as:
A)sales revenue less
Q60: A LIFO liquidation occurs when the inventory
Q61: The lower-of-cost-or-market rule is based on accounting:
A)disclosure.
B)materiality.
C)conservatism.
D)revenue.
Q62: The choice of an inventory costing method
Q63: The conservatism principle in accounting means that
Q65: If prices are rising and a company
Q66: All of the following are reasons for
Q67: When LIFO is used and inventory quantities
Q68: The principle that can be summarized as
Q69: When inventory costs are increasing with no
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