QUESTION 34 Xavier Company paid cash to purchase two identical inventory items. The first purchase cost $25.00 cash and the second cost $26.00 cash. Xavier sold one inventory item for $35 cash. Based on this information alone: O a. cash flow from operating activities is $26.00 assuming a LIFO cost flow. Ob the amount of cash flow from operating activities is not affected by the cost flow method. O cash flow from operating activities is $25.50 assuming a weighted average cost flow. od cash flow from operating activities is $25.00 assuming a FIFO cost flow. An understatement of ending inventory results in which of the following in the present period? O a. Understatement of cost of goods sold. b. Understatement of total assets. Oc Overstatement of retained earnings. d. Overstatement of net income. QUESTION 26 Which of the following inventory costing methods is approved by GAAP? O a. FIFO O b.LIFO c. Weighted average. d. All of these Georgia Co. had beginning inventory of $800 and ending inventory of $400. The cost of goods sold was $3.200. Based on this information, Georgia Co. must have purchased inventory amounting to: a. $3.600 b. $3,200 OC $2.800 d.$4,400 QUESTION 25 Which of the following statements is true regarding inventory reporting? a. Cost of goods sold and Inventory accounts are attractive targets of fraud. b. There is little to no potential for fraud in inventory accounts: c. The balance sheet is not impacted by fraudulent inventory reporting, d. There are no adequate methods of record keeping for inventory