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QUESTION 23 In times of inflation that is when prices are rising), which of the following is true: OLIFO will yield a lower net income O FIFO will yield a lower net income O Depends on other facts beyond the movement of prices The net income will be the same no matter which method is used QUESTION 24 A summary of some key financial information reported by Summer's Surf Company are as follows: Balance Sheet items Income Statement Items Accounts Receivable 15.000 Sales Inventory $20.000 Cost of goods sold Total assets $300,000 Operating expenses Total liabilities $200 000 Net Income Total stockholders equity $100.000 $600,000 $450,000 $110.000 $15,000 E Question: For the year, what is Summer's inventory turnover stated in number of days: None of these 12.17 days o 15 days 9.13 days 16 22 days QUESTION 25 Which of the following below is a CORRECT statement A detail listing of general ledger account balances is referred to as a chart of accounts Upon placing an order for supplies, a company will record a transaction since it is generally liable for payment at that time A transaction is an event that affects the balance sheet at least twice A chart of accounts is a haphazard listing of general ledger accounts used in recording transactions QUESTION 26 Which of the following is NOT a debit account Cost of goods sold Inventory Dividends Sales revenue QUESTION 27 Which of the following balance sheet accounts will never have a credit balance Notes payable Common stock-par value Treasury stock Accumulated depreciation QUESTION 28 Which of the following balance sheet accounts will never have a debit balance in Inventory Allowance for bad debts Cash Accounts receivable