quiz 7 - Question 1 0.5 out of 0.5 points When a company...

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Unformatted text preview: Question 1 0.5 out of 0.5 points When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Inventory to LIFO account is used. This account should be reported Answer Selected Answer: on the balance sheet in the Current Assets section. Correct Answer: on the balance sheet in the Current Assets section. Question 2 0.5 out of 0.5 points Which of the following represents the best justification for the departure from the historical cost principle that results when lower of cost or market is used? Answer Selected Answer: The loss in utility that results from a decline in the market value of inventory should be charged against revenues in the period in which it occurs. Correct Answer: The loss in utility that results from a decline in the market value of inventory should be charged against revenues in the period in which it occurs....
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This note was uploaded on 10/19/2010 for the course ACCOUNTING Finance 23 taught by Professor Bob during the Winter '10 term at Wayne State University.

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quiz 7 - Question 1 0.5 out of 0.5 points When a company...

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