QUESTION 4A firm has a high level of inventory turnover and uses the First In First Out (FIFO) inventory valuation method. In a period of rising purchaseprices what would the value of the closing inventory units be?a. Based on the prices of the first items receivedO b. Much lower than current purchase pricesO . The average of all goods purchased in the periodO d. Close to current purchase prices

Name: QUESTION 4A firm has a high level of inventory turnover and uses the
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Description: QUESTION 4A firm has a high level of inventory turnover and uses the First In First Out (FIFO) inventory valuation method. In a period of rising purchaseprices what would the value of the closing inventory units be?a. Based on the prices of the firs

Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…

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QUESTION 4 A firm has a high level of inventory turnover and uses the First lIn First Out (FIFO) inventory valuation method. In a period of rising purchase prices what would the value of the closing inventory units be? O a. Based on the prices of the first items received O b. Much lower than current purchase prices O c. The average of all goods purchased in the period O d. Close to current purchase prices

QUESTION 4 A firm has a high level of inventory turnover and uses the First lIn First Out (FIFO) inventory valuation method. In a period of rising purchase prices what would the value of the closing inventory units be? O a. Based on the prices of the first items received O b. Much lower than current purchase prices O c. The average of all goods purchased in the period O d. Close to current purchase prices

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. At the end of a period, the inventory account is _______. 2. Gross sales less sales discounts and sales returns and allowances equals____. 3. When an unearned, The revenue will go____. 4. Sales returns and allowances are used in calculating _______. 5. Ending inventory represents goods not yet ________. 6. Inventory is increased by a _______.
QUESTION 11 Match the term on the left to the appropriate description on the right. v Cost of goods available for sale (COGAS) A. A valuation rule applied to ending inventory. v LIFO reserve B. The maximum value that cost of goods sold (COGS) can be in a period. C. The amount by which inventory measured under FIFO would exceed inventory measured under LIFO v Lower-of-cost-or-market v Inventory turnover ratio. D. An inventory cost flow assumption. E. A measure for evaluating a company's inventory management. v FIFO (first-in, first out) v Periodic inventory F. A system for calculating COGS based on ending inventory value.
Which one of the following statement indicates the Inventory turnover ratio? Select one: a. How quickly company prepared its inventory b. How quickly company converts its inventory into cash c. How quickly company purchases its inventory d. How quickly company sells its inventory
47-Under which method of inventory valuation, do the older goods are issued out first? a. Last In First Out (LIFO) b. Weighted average method c. Average price method d. First In First Out (FIFO)
What does the inventory turnover period ratio measure? Select one: a.Profitability. b.The average time an organisation holds inventory. c.The liquidity of the firm. d.How much the firm's current assets could decrease and still leave it able to pay its current liabilities.
An increasing inventory turnover ratioa. Indicates a longer time span between the ordering andreceiving of inventory.b. Indicates a shorter time span between the ordering andreceiving of inventory.c. Indicates a shorter time span between the purchase andsale of inventory.d. Indicates a longer time span between the purchase andsale of inventory.
Companies can use various methods to determine the cost of inventory, including FIFO, LIFO, and average cost. In a period in which the cost of inventory is rising, which of the following statements is true? The LIFO method will result in the lowest income tax expense. The LIFO method will result in the highest inventory balance at year-end. The average cost method will result in the highest net income. The LIFO method will result in the lowest cost of goods sold. The average cost method will result in the lowest inventory balance at year-end. The average cost method will result in the highest inventory balance at year-end. The FIFO method will result in the lowest net income. None of the listed choices are correct.
31- Under which method of inventory valuation, do the older goods are issued out first? a. First In First Out (FIFO) b. Weighted average method c. Last In First Out (LIFO) d. Average price method
ESSAY 1- 3. Are high turnover ratios good or bad? 4 - 6 If company A has accounts receivable turnover of 3.5 while company B has an accounts receivable turnover of 8.1, which is a better conipany? Explain vhy 7-9.What factors affect inventory turnover ratio? Jebt danag the 10 – 12.What factors affect accounts payable turnover ratio?
20-Under the Retail method the closing inventory is based on a. Retail price of inventory b. Average price of inventory purchased c. Price at which old inventory is purchased d. Wholesale price of inventory
Question: Which of the following inventory valuation methods typically results in higher ending inventory value during periods of rising prices? A) FIFO (First-In-First-Out) method B) LIFO (Last-In-First-Out) method C) Weighted Average method D) Specific Identification method