5. You would see Work-in-Process Inventory on the balance sheet of: a. b. c. d. Ford Motor Company Target J. C. Penney KPMG, LLP 6. Inventory is almost always: a. b. c. d. a noncurrent asset obsolete a current asset a current liability a. b. c. 7. If you are told that the inventory at ABC Company is moving slower in Year 4 compared to Year 3, you would say: the inventory turnover is less and the days in inventory are more the inventory turnover is more and the days in inventory are less the inventory turnover is less and the days in inventory are less d. the inventory turnover is more and the days in inventory are more 8. A LIFO liquidation is not related to: a. Purchases of Inventory that exceed Units Sold b. A lower Cost of Goods Sold Expense than expected c. Units in Beginning Inventory entering Cost of Goods Sold Expense d. Higher Tax Payments than expected 9. Which statement about FIFO is false? a. FIFO is used by companies because it is fairly simple to monitor. b. FIFO is used by companies because it can save or defer taxes. c. FIFO usually gives a lower cost of goods sold expense than does LIFO. d. FIFO usually gives a higher ending inventory than does LIFO. 10. Assume ABC Company shows this information related to its inventory. Inventory from the Perpetual Inventory Records is 8,500 units and Inventory from the Physical Count is 8,700 units. What is the best possible reason for this difference? a. Inventory returned by customers to the company is not being recorded. b. Inventory sent back to suppliers by the company is not being recorded. c. Inventory purchases are being recorded twice. d. Inventory that was stolen is still recorded