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A grocery store must use FIFO to value its inventory because grocery stores generally sell older inventory items before selling newer inventory items. True False
- A grocery store must use FIFO to value its inventory because grocery stores generally sell older inventory items before selling newer inventory items.
- True
- False
- Both cost of goods sold and ending inventory are valued at AVERAGE costs under the ___cost flow assumption
- Weighted Average
- FIFO
- LIFO
- Specific Identification
- Cost of goods sold is valued at NEWER costs and ending inventory is valued at OLDER costs under the ____cost flow assumption.
- LIFO
- Weighted average
- Specific Identification
- FIFO
- Target purchases plastic Halloween pumpkins for $5 each. Target believes that the pumpkins will sell for $10 each. The pumpkins should be valued at ____on Target's balance sheet.
- $10 each
- $5 each
- If costs are rising, the LIFO cost flow assumption generally results in the lowest tax burden.
- True
- False
- True
- False
- Weighted Average
- FIFO
- LIFO
- Specific Identification
- LIFO
- Weighted average
- Specific Identification
- FIFO
- $10 each
- $5 each
- True
- False
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