31 During a p During a period of steadily rising costs, the Cost Flow Method that yields the lowest reported net income is: (A) Specific Identification (B) Average (C) FIFO (D) LIFO U2 The Understatement of the Ending Inventory balance causes: (A) Cost of Goods Sold to be overstated and Net Income to be understated (B) Cost of Goods Sold to be overstated and Net Income to be overstated (C) Cost of Goods Sold to be understated and Net Income to be understated (D) Cost of Goods Sold to be understated and Net Income to be overstated (E) Cost of Goods Sold to be overstated and Net Income to be correct 33 The Understatement of the Beginning Inventory balance causes: (A) Cost of Goods Sold to be overstated and Net Income to be understated (B) Cost of Goods Sold to be overstated and Net Income to be overstated (C) Cost of Goods Sold to be understated and Net Income to be understated (D) Cost of Goods Sold to be understated and Net Income to be overstated (E) Cost of Goods Sold to be overstated and Net Income to be correct .34 Which of the following statements concerning inventory systems are true? (A) The periodic inventory system continually updates inventory records (B) The perpetual inventory system updates inventory records at the end of the period (C) The periodic inventory system updates inventory at the end of a period (D) The perpetual inventory system continually updates inventory records (E) Both answers C and D are true statements