If the financial statements cannot be relied on because the contain one or more material departures from GAAP what type of opinion will the auditor use?

A. Qualified opinion

B. Adverse opinion

C. Disclaimer of opinion

d. Unqualified opinion

What happens when a company is operating in an inflationary environment?

A.The company's cost of goods sold will be lower if it uses LIFO as opposed to FIFO.

B. The company's assets will be lower if it uses LIFO as opposed to FIFO cost flow.

C. The company's net income will be the same regardless of whether LIFO or FIFO is used.

D. The company's net income will be higher if it uses LIFO than if it uses FIFO.

When the perpetual inventory system is used where can the best estimate of the amount of inventory on hand be found?

A. By applying the gross margin method

B. On the previous periods balance sheet

C. In the inventory account in the general ledger

D. By subtracting sales for the period from the beginning inventory account balance

How is the net income percentage calculated?

A. Total stockholders' equity divided by net sales

B. Net Sales divided by net Income

C. Net Income divided by net Sales

D. Net Income divided by Gross Margin