financial statement analysis

One advantage of LIFO over FIFO under normal conditions is that: Select one: O a. it results in higher current ratios O b. it results in higher cash flows O c. it results in higher gross margins O d. it reports higher retained earnings A write-down in asset value is: Select one: O a. required if an asset is deemed to have permanent impairment of value b. results in a direct debit to stockholders' equity c. not allowed under GAAP O d. a very rare occurrence Target Inc. has 30 million shares outstanding and trades at $50 per share. Target has net identifiable assets with a book value of $1,000 million and a fair value of $1,200 million. Acquirer Corporation purchases all of Target Inc. stock for $60 per share. How much will Acquirer records as goodwill upon acquiring Target? Select one: O a. $600 million O b. $500 million O c. $800 million O d. $300 million Goodwill is: Select one: O a. the excess of the appraised value of net assets over the fair value of net assets O b. the excess of the purchase price of net assets over the book value of net assets c. the excess of the purchase price of net assets over the fair value of net assets d. the excess of the appraised value of net assets over the book value of net assets With respect to LIFO, which of the following is incorrect? Select one: a. If the LIFO reserve increases in a given year, cost of goods sold under the LIFO inventory costing is higher than it would have been if FIFO had been used for that year. O b. LIFO results in inventory levels on the balance sheet that are closer to current cost than FIFO. O c. If a company uses LIFO for tax purposes, it must use it for GAAP purposes O d. LIFO results in better matching on the income statement than FIFO