quiz 4 - Question1 Question operations...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1. Question : Nu Company reported the following pretax data for its first year of  operations.  Net sales 2,800 Cost of goods available for sale 2,500 Operating  expenses 880 Effective tax rate 40% Ending inventories: If LIFO is  elected 820 If FIFO is elected 1,060 What is Nu's gross profit percentage if it elects LIFO?   Student Answer:  80%.    49%.    40%.    5%.   Points Received: 1 of 1   Comments: Question 2. Question : During periods when prices are rising and inventory quantities are  stable, cost of goods sold will be:   Student Answer:  Higher under FIFO than LIFO.    Higher under FIFO than average cost.    Lower under average cost than LIFO.    Lower under LIFO than FIFO.   Points Received: 1 of 1   Comments: Question 3. Question : The use of LIFO during a long inflationary period can result in:
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
  Student Answer:  A net increase in income tax expense.    An inflated balance sheet.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern