b. moving averagerequires that a new average be computed after every sale. c. valuation using theFIFO assumptionis the same as underthe periodic inventory system. d. last units purchased during the period using theFIFO assumptionare allocated to thecost of goods sold (COGS)when units are sold. 7.Two categories of expenses for merchandising companies are
8.Iferrorsoccur in the recording process, they
9. A change in the estimated useful lifeof equipment requires
10. The calculation of depreciation using the declining balance method, a. uses residual value in determining the amount to which a constant rate is applied. b. multiplies a constant percentage times the previous year’s book value of PPE. c. yields an increasing depreciation expense each period. d. multiplies a declining percentage times a constant book value.
