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Which of the following

Which of the following

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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Which of the following statements regarding the financial statement impact of inventory costing is false? Multiple Choice О Inventory on the balance sheet approximates current cost when FIFO is used. О The use of different costing methods do not impact net income. О Cost of goods sold on the income statement approximates current cost when LIFO is used. О The weighted average method smooths out erratic changes in costs. О When purchase prices are different, the methods to assign inventory costs result in different amounts for cost of goods sold.
Transcribed Image Text:Which of the following statements regarding the financial statement impact of inventory costing is false? Multiple Choice О Inventory on the balance sheet approximates current cost when FIFO is used. О The use of different costing methods do not impact net income. О Cost of goods sold on the income statement approximates current cost when LIFO is used. О The weighted average method smooths out erratic changes in costs. О When purchase prices are different, the methods to assign inventory costs result in different amounts for cost of goods sold.
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