QUESTION 29 The principle of consistency states that: O a company cannot change from one inventory valuation method another by using the same inventory method from one fiscal period to another, the financial statements are more meaningful. changes in accounting methods should occur from one fiscal period to the next. O a company should switch from LIFO to FIFO every other period. QUESTION 30 The retail method: O determines the value of the ending inventory using a cost-to-retail ratio O is often used for interim financial reports. determines the value of the ending inventory using a predetermined gross profit rate. Both determines the value of the ending inventory using a cost-to-retail ratio and is often used for interim financial reports are correct. QUESTION 31 Merchandise Inventory is recorded on the O Balance Sheet. O Statement of owner's equity. O Income Statement. O None of the above is correct. QUESTION 32 A company installed a new engine in their delivery vehicle. This is an example of a(n): O extraordinary repair. O addition Obetterment O revenue expenditure QUESTION 33 A gain on disposal of an asset is listed as: O an asset on the balance sheet. O a liability on the balance sheet. O other expense on the income statement. O other income on the income statement. QUESTION 34 A gain on the sale of an asset occurs when: the cash received is greater than the book value of the asset. O the cash received is less than the book value of the asset the book value is equal to the cost of the asset, and the cash received is less than the cost of the asset. the accumulated depreciation is less than the asset cost