[Q3]

(TCO F) Which of the following is not an effect of capitalization?

Group of answer choices

a. Capitalization usually reduces net income.

b. Capitalization usually yields a smoother net income.

c. Capitalization usually decreases the volatility of the return on investment.

d. Capitalization usually increases net income.

[Q4]

(TCO F) FIFO provides a better ending inventory figure more closely reflecting:

Group of answer choices

a. current assets.

b. current costs.

c. current liabilities.

d. current inventory.