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Question 11 (i) During periods of inflation,_______________ may maximize net income of a merchandising company. A: Average Cost Assumption B: FIFO Assumption C: Specific Identification D: None of the above (ii) Purchase of _____________    is/are NOT considered as investing activities. 1. Other companies' shares 2. Company's own stock 3. Land 4. Inventory A: 2 only B: 2 and 3 C: 2 and 4 D: 2, 3 and 4

Question 11 (i) During periods of inflation,_______________ may maximize net income of a merchandising company. A: Average Cost Assumption B: FIFO Assumption C: Specific Identification D: None of the above (ii) Purchase of _____________    is/are NOT considered as investing activities. 1. Other companies' shares 2. Company's own stock 3. Land 4. Inventory A: 2 only B: 2 and 3 C: 2 and 4 D: 2, 3 and 4

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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Question 11

(i) During periods of inflation,_______________ may maximize net income of a merchandising company.

A: Average Cost Assumption

B: FIFO Assumption

C: Specific Identification

D: None of the above

(ii) Purchase of _____________    is/are NOT considered as investing activities.

1. Other companies' shares

2. Company's own stock

3. Land

4. Inventory

A: 2 only

B: 2 and 3

C: 2 and 4

D: 2, 3 and 4

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