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1.) A Credit memo is a note from a seller indicating its intent to credit a customer’s accounts receivable.   Select one: True False   2.) In a period of rising prices, the FIFO method of costing inventory results in income tax savings for companies.  Select one: True False   3.) A debit memo represents a decrease to accounts payable and therefore results in less money owed to the seller. Select one: True False

1.) A Credit memo is a note from a seller indicating its intent to credit a customer’s accounts receivable.   Select one: True False   2.) In a period of rising prices, the FIFO method of costing inventory results in income tax savings for companies.  Select one: True False   3.) A debit memo represents a decrease to accounts payable and therefore results in less money owed to the seller. Select one: True False

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.) A Credit memo is a note from a seller indicating its intent to credit a customer’s accounts receivable.  

Select one:
True
False
 
2.) In a period of rising prices, the FIFO method of costing inventory results in income tax savings for companies. 
Select one:
True
False
 
3.) A debit memo represents a decrease to accounts payable and therefore results in less money owed to the seller.
Select one:
True
False
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