Which of the following
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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