ACC 311 Quiz 6 - ACC 311 Name: Quiz #6A (Atiase) 10/21/2010...

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Name: KEY Quiz #6A (Atiase) 10/21/2010 9:30 and 11:00 Class Time: 1. Indicate whether the following statements are True or False (8 points) a. FIFO allocates the oldest unit costs to cost of goods sold and the newest or most recent unit costs to ending inventory True b. Raw materials, work in process and finished goods are categories of inventory on a merchandiser’s (retailer’s) balance sheet. False c. When goods are shipped (FOB) free on board shipping point, the purchaser or buyer usually pays for shipping. True d. If cost prices are rising, cost of goods sold under LIFO will be higher than cost of goods sold under FIFO. True e. Inventory is valued at the lower of cost or fair value under US GAAP. False f. IFRS permits companies to value inventory using specific identification, FIFO, LIFO and Average cost. False g. If last year’s ending inventory is overstated, this year’s net income will not be affected by the error made last year. False
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This note was uploaded on 06/07/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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ACC 311 Quiz 6 - ACC 311 Name: Quiz #6A (Atiase) 10/21/2010...

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