None Which one of the following is an advantage of LIFO?a. In periods of rising prices, less income tax is paid.b. Conservative income statements and balance sheet disclosures result from falling prices.c. Record keeping and financial statement preparation are easier.d. In periods of rising prices, more holding gains are reported in net income.

Step 1:Lifo method means last in first out, the inventory which came in store last will be sold…

Answered: Which one of the following is an…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 15DQ: How would reported income differ if LIFO rather than FIFO were used when purchase prices are rising?...

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Why is the acid test ratio a more rigorous test of short-term solvency than the current ratio? A. The quick ratio eliminates prepaid expenses for the denominator.B. The quick ratio eliminates prepaid expenses for the numerator.C. The quick ratio eliminates inventories from the numerator.D. The quick ratio considers only cash and marketable investments as current assets.E. The quick ratio eliminates revenue from the numerator.
What is the impact on profit for the year if income overstated? a. no effect b. profit will be overstated c. cannot be determined due to insufficient information d. profit will be understated
1. Which of the following are potential explanations that have been proposed for the January Effect? Select all that apply. A. Tax loss selling B. IRS wash sale rule C. Psychological drivers, completely unrelated to the market D. Window dressing 2. If a certain asset commands a liquidity premium, what does this imply? A. It has a higher expected return than less liquid similar assets B. It is more sensitive to liquidity shocks than similar assets C. It is more difficult to trade than similar assets D. It has a higher price than less liquid similar assets ' dont copy other's answer, Select all that apply
What type of question is finding the detail to more clearly understand why net income is decreasing when revenues are increasing? Multiple Choice Whet happened? What is happening Why did it happen? What ere the root couses of past results? WIlI heppen in the fuure? What is the probebility something will heppen? is t forecastable? Whet should we do based on what we expect will happen? What should we do based on what we expect wil heppen? How do we optimize our performance based on potential consreinns
Which of the following is a disadvantage of the average rate of return method? a. fails to consider the time value of money b. includes the amount of income earned over the entire life of the proposal c. emphasizes accounting income d. difficult to use
Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use
Assuming everything else constant, which of the following will NOT make net profit margins increase? Decrease in Selling, General, and Administrative expenses. Increase in Research & Development expenses. Decrease Research & Development expenses. Decrease costs of goods sold.
When preparing a projected income statement, which of the following additional information, other than the financial statements would probably not be relevant? a) Expected capital expenditure b) The competitive environment c) New versus old store mix d) Expected level of macroeconomic activity
___________ is the possible loss of revenue resulting mainly from a decline in the revenue base. Group of answer choices Investment risk Debt-related risk Revenue risk Insurance risk
What is an earnings management benefit from showing an increased figure for bad debt expense?
What is an earnings management benefit from showing a reduced figure for bad debt expense?
In general, what is true of people's risk aversion for changes in income that are marginal (i.e., very small changes in income)? (a) They are less risk averse. (b) Their risk aversion does not change. (c) It depends on the shape of the individual utility function. (d) They are more risk averse.

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