Quiz 6 - Quiz 6 (Inventory) Points Possible Points Earned...

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      Quiz 6 (Inventory)    Points Possible  15  Points Earned  14  Points Missed  1  Points Ungraded  0  Score  93.3% 1. (T/F)  Purchases and sales generally must be accrued in measuring income when  the sale of merchandise is a material income-producing factor. Response: TRUE Answer: TRUE  Points: 1 / 1 Comment: See, for example, Rev. Rul. 69-537, 1969-2 CB 109 2. (T/F)  A business selling items on consignment must include the items consigned to  it in its inventory. Response: FALSE Answer: FALSE  Points: 1 / 1 Comment: erchandise should be included in inventory only if title is vested in the  taxpayer. (Reg. § 1.471-1) 3. (T/F)  Shrinkage can only be accounted for at the time a physical inventory is taken;  use of estimates is not allowed for tax-reporting purposes. Response: FALSE Answer: FALSE  Points: 1 / 1 Comment: IRC § 471(b) and Rev. Proc. 98-29 4. (T/F)  First-in first-out (FIFO) inventory accounting matches revenues against the  replacement cost of the items that have been sold. Response: FALSE
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This note was uploaded on 06/23/2009 for the course BUPA 556 taught by Professor Curry during the Summer '09 term at IUPUI.

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Quiz 6 - Quiz 6 (Inventory) Points Possible Points Earned...

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