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Unformatted text preview: recorded until the goods are delivered to the buyer. Your Answer: Choice Selected True Selected False Question 7: Score 1/1 During periods of inflation, the LIFO cost flow assumption will yield a lower inventory value than FIFO. Your Answer: Choice Selected True False Question 8: Score 1/1 Merchandise sold F.O.B. destination belongs to the buyer while in transit. Your Answer: Choice Selected True False Question 9: Score 1/1 Because of the consistency principle, inventory should never be written down below cost. Your Answer: Choice Selected True False Question 10: Score 1/1 A clothing store would logically have a higher inventory turnover rate than would a doughnut shop. Your Answer: Choice Selected True False Question 11: Score 1/1 Overstating the ending inventory will result in understating the cost of good sold and overstating profits. Your Answer: Choice Selected True False...
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This note was uploaded on 11/10/2009 for the course ACCOUNTING FA taught by Professor Jonathan during the Spring '08 term at Maastricht.
- Spring '08
- Financial Accounting