Question 4: complete the following statements: No. statement complete 1 expenses incurred in the process of earning sales revenue (Examples: sales salaries and insurance expense) 2 ..... profit equal Sales Revenue less Cost of Goods Sold 3 .......... Inventory: Detailed records of the cost of each item are maintained, and the cost of each item sold is determined from records when the sale occurs. 4 ......... Inventory: Cost of goods sold is determined only at the end of an accounting period. 5 Net realizable value: Amount that a company expects to realize (receive from the sale of inventory) 6 ...... A PHYSICAL INVENTORY Involves counting, weighing, or measuring each kind of inventory on hand 7 Companies often....... inventory when the business is closed or business is slow or at the end of the accounting period 8 ......... GOODS: To hold the goods of other parties and try to sell the goods for them for a fee, but without taking ownership of the goods 9 Most of IFRS companies use ........ cost flow assumption method 10 A major advantage of the ....... method is that in a period of inflation, the costs allocated to ending inventory will approximate their current cost 11 Both inventory and net income are ....... when companies use FIFO in a period of inflation 12 Average-cost results in the ....... income taxes (because of lower net income) during times of rising prices 13 If ending inventory........; cost of goods sold understated, but net income, assets and equity overstated 14 If ending inventory........; cost of goods sold overstated, but net income, assets and equity understated