Generally, inventory inspection costs are reported as operating expenses on the income statement, True ot Flase

Which of the following statements is correct when inventory unit costs are decreasing?

Multiple Choice

LIFO will result in lower net income and a higher inventory valuation than will FIFO.

LIFO will result in higher net income and a higher inventory valuation than will FIFO.

FIFO will result in higher net income and a higher inventory valuation than will LIFO.

FIFO will result in higher net income and a lower inventory valuation than will LIFO.

A company acquires land by issuing 10,000 shares of its $10 par value common stock which is currently trading at $20 per share, and the appraised value of the land is $250,000. Which of the following statements correctly describes the recording of the land?

Multiple Choice

Record the land at its appraised value of $250,000 and recognize a gain of $50,000 since the issued stock is currently worth $200,000.

Record the land at the $200,000 value of the consideration given up.

Record the land at the average of its appraised value of $250,000 and the $200,000 value of the stock issued, thereby recognizing a $25,000 gain.

Record the land at the par value of the stock given up, $100,000.

Ordinary repairs and maintenance costs are incurred to maintain a long-lived productive asset and are expensed as incurred. True or Flase

You have been asked to compute the cash equivalent price of a machine assuming the cost (including principal and interest) is to be paid in two unequal payments after the acquisition date. Which of the following table values would be used to find the cost of the machine?

Multiple Choice

Present value of a single amount.

Present value of an annuity.

Future value of a single amount.

Future value of an annuity.