Finishedgoodsaretheequivalentofmerchandiseinventoryforaretailerorwholesalerinthatbothrepresentthe inventoryofgoodsheldforsale. a.True b.False 2.Specificidentificationreliesonmatchingunitcostswiththeactualunitssold. a.True b.False Indicatetheanswerchoicethatbestcompletesthestatementoranswersthequestion. 3.Summer,Inc.hasbeeninbusinessfor20years.DuringthattimethecompanyhasconsistentlyusedtheLIFO inventorycostingmethod.Becauseofinflation,pricesformerchandisehaveincreasedconsistentlyoverthe20years. Thecompanyhasmaintainedthesameinventoryquantitiesoverthe20-yearperiod.Whichoneofthefollowing statementsistrue? a.Summer,Inc.'stotalnetincomeforthepast20yearsisgreaterthanitwouldhavereportedusinganother inventorymethod. b.Summer,Inc.willhavepaidmoreincometaxesoverthepast20yearsthanitwouldhaveifithadusedthe FIFOmethod. c.SummerwillhavetocontinueusingtheLIFOmethodindefinitelybecauseofgenerallyacceptedaccounting principlesandfederalincometaxrules. d.Theendinginventoryfigurereportedonthebalancesheetmaybesignificantlylowerthanitscurrentvalue