PARTIMULTIPLE CHOICE QUESTIONS points eorrect answer to each qwestion Pecqestion

Question

PARTIMULTIPLE CHOICE QUESTIONS points eorrect answer to each qwestion Pecqestion is worth TIREE 1. Which inventory costing current market value? method will produce an amount for ending inventory that is closest to A·Weighted average. B. Specifie identification C. HFO D. LIFO 2. Daisy Company purchased two identical inventory items. The item purchased first cost SI4.00, and the item purchased second cost $15.00. Daisy sold one of Which of the following statements is true? f FIFO were used. A. Ending inventory will be lower if Daisy uses weighted average thani B. Cost of goods sold will be higher if Daisy were used. uses FIFO than if weighted average C. The dollar amount assigned to ending inventory will be the same no matter whi ch cost flov method is used. D. Gross margin will be higher if Daisy uses LIFO than it would be if FIFO were used. 3. Which of the following businesses is most likely to use a specific identification cost flo method? A. Hardware store B. Grocery store C. Car dealership D. Thrift shop 4. When prices are rising, which method of inventory, if any, will result in the hig inventory? A. Weighted average. B. FIFO C. LIFO . None of these; inventory methods cannot affect cash flows.

Explanation / Answer

1.FIFO method assumes items purchased first will be sold first. Therefore ending inventory consists of those items purchased at the end of the period. These Prices will produce ending inventory value closest to Current Market Value.

Answer C. FIFO

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.