The 2016 records of ABC Company showed beginning inventory of $6,000; cost of goods sold of $14,000l and ending inventory of $8,000. What was the purchases amount for 2016? $9,000 $10,000 $12,000 $16,000 Which of the following ratios usually is not considered to be a test of Current ratio. Profit margin. Return assets. Earnings per share. A Co's gross profit percentage was 70.4 % in 2015 and 69.7% in 2016. Which of the following was the most likely of that change? Inflation on selling price. Rising product cost on a percentage of sales. More discounts offered in 2015. All of the examples may have caused the change. XYZ Company purchased a machine on January 1, 2016, for $10,000. The company's bookkeeper incorrectly used a 6-year life of a 5-year life to depreciate the machine. What would be the effect of this error on the 2016 financial statements? Overstatement of assets by an understatement of shareholders' equity. Understatement of assets offset by an understatement of earnings. Overstatement of assets, income, and shareholders' equity. Understatement of assets and an overstatement of liabilities. When prices are rising, which of the following is true? FIFO will result is lower net income and a higher inventory valuation than will Weighted Average Cost method. FIFO will result in higher net income and a higher inventory valuation than will Weighted Average Cost method. Specific identification results in lower net income and lower inventory values than Weighted Average Cost method. Specific identification results is higher net income and lower inventory values than FIFO