Multiple Choice Question 42 merchandise on consignment. As of March 31, Dolan had recorded the transaction as a purchase and included the goods in inventory. The effect of this on its financial statements for March 31 would be O no effect net income was correct and current assets and current liabilities were overstated. O net income, current assets, and current liabilities were overstated. net income and current iabilities were overstated. CALCULATOR FULL SCREEN PRINTER VERS Multiple Choice Question 72 which of the following is a reason why the specfic identification method may be considered iceal for asigning costs to Inventory O The cost flow matches the physical flow. O There is no arbitrary allocation of costs. O Able to use on all types of inventory The potential for manipulation of net income is reduced e CALCULATOR FULL SCREEN PRINTER VERSION BACK Multiple Choice Question 89 Waterway Inc. took a physical inventory at the end of the year and determined that $847000 of items were not included in the physical S500 of goods purchased were in transt that were shipped f..b. destination (goods were actually received by the inventory at the end of the year? inventory count).The company sold $39500 worth of inventory f.o.b. destination. What amount should Waterway report as O $942500 $886500 $962000. O $847000. CALCULATOR FULL SCREEN PRINTER CPA Question 02 When the FIFO Inventory method is used during periods of rising prices, a perpetual inventory system results in an ending inventory cost that is O The same as in a periodic inventory system. O Higher than in a periodic inventory system. Lower than in a periodic inventory system. O Higher or lower than in a periodic inventory system, depending on whether physical quantities have increased or