Q3:In a period of rising prices, the inventory method which tends to report the lowest inventory is:

Select one:

a. Average-cost.

b. Specific identification.

c. LISH.

d. FIFO.

Q4:

Inventory is reported in the financial statements at

Select one:

a. cost.

b. net realizable value.

c. the higher-of-cost-or-net realizable value.

d. the lower-of-cost-or-net realizable value.

Q6:

In a period of rising prices, the statement of financial position will report a higher inventory amount if FIFO, rather than average-costing, is the cost flow assumption used.

Select one:

a. False

b. True

Q8:

The cost flow method that often parallels the actual physical flow of merchandise is the

Select one:

a. average-cost method.

b. specific identification method.

c. FIFO method.

d. gross profit method.

Q9:

Transactions that affect inventories on hand have an effect on both the statement of financial position and the income statement.

Select one:

a. True

b. False