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asked you for advice, since she knows you are taking an accounting class. Why does this year - end inventory purchase of wood boards lower
asked you for advice, since she knows you are taking an accounting class.
Why does this yearend inventory purchase of wood boards lower net income?
Select one:
a Because the company is spending cash to purchase more inventory.
b The ending inventory will be stated at a higher amount than if FIFO was used.
c A lower cost of goods sold reduces net income.
d Since the company is using LIFO, the last items purchased will be included in the cost of good sold.
e The controller made a mistake; the purchase of inventory has no bearing on the amount of net income.
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