How does dollar-value LIFO differ from traditional LIFO in accounting records? a) Uses different cost flow assumption b) Pools inventory by dollars not units c) Applies only to specific industries d) Required for tax purposes. I want answer

How does dollar-value LIFO differ from traditional LIFO in accounting records? a) Uses different cost flow assumption b) Pools inventory by dollars not units c) Applies only to specific industries d) Required for tax purposes. I want answer

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 7DQ

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How does dollar-value LIFO differ from traditional LIFO in accounting records? a) Uses different cost flow assumption b) Applies only to specific industries c) Pools inventory by dollars not units d) Required for tax purposes
Which one of the following statements is true? a. Income manipulation is difficult under LIFO.b. Accounting principles do not require that the inventory cost flow approximate the physical flow of goods.c. Companies may use LIFO for tax purposes and FIFO in the financial statements.d. In periods of declining prices, LIFO will result in the payment of less income taxes.
Which is incorrect concerning the presentation of Income Statement? A. When items of income and expense are material, their nature and amount shall be disclosed separately. B. An entity shall present extraordinary items separately on the face of the income statement or in the notes to F/S. C. Natural presentation means that expenses are aggregated according to their nature like depreciation and employee benefits. D. Cost of sales method classifies expenses according to their function such as cost of sales, cost of distribution and cost of administrative activities. E. Both the natural presentation and functional presentation has their own merits for different types of entities, so the standard allows management to choose which they think is more relevant and reliable presentation.
Advantages and Disadvantages of Reporting Items in Other comprehensive income instead of on the face of the income statement
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) Economic entity assumption g. Matching principle Going concern assumption h. Full disclosure principle Monetary unit assumption i. Relevance characteristic Periodicity assumption j. Reliability characteristic Historical cost principle k. Consistency characteristic Revenue recognition principle ____ 1. Stable-dollar assumption (do not use historical cost principle). ____ 2. Earning process completed and realized or realizable. ____ 3. Presentation of error-free information with representational faithfulness. ____ 4. Yearly financial reports. ____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____ 6. Useful standard measuring unit for business…
Which of the following statements is true regarding the lower of cost or net-realizable value (NRV)? I. Firms have the option whether to apply this accounting method. II. Firms can reduce the cost of inventory but not increase it. III. If the NRV is lower, the entry recorded reduces total assets.
Which is an example of a change in accounting estimate? A. Change methods of inventory costing, B. report consolidated financial statements in place of individual statements, C. Adopt a new Accounting Standard, or D. change actuarial estimates pertaining to a pension plan.
Hoosier Inc. uses the LIFO inventory cost method to prepare the company's tax return. Which method must the company use to account for inventory on their financial statements? Assume US GAAP and rising costs. O FIFO LIFO O Weighted average or LIFO Specific Identification O LIFO or FIFO, but not weighted average
If the inventory reported on the statement of financial position is understated, then the net income reported on the income statement is understated. True or Flase
What items are not presented on the income statement?