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1. Unlike rent, salaries, and utilities, depreciation
A. is more likely to involve an estimate.
B. is a non-cash expense.
C. is not an expense.
D. both A and B are correct.
E. both A and C are correct.
2. A supermarket that uses the LIFO inventory method for accounting purposes during
a period of rising prices (increasing purchase costs)
A. will report higher total assets than if it had used a different inventory method.
B. increases the chances that customers may experience health problems
after they purchase its dairy products.
C. will report a lower net income than if it had used a different inventory method.
D. both A and B are correct.
E. both B and C are correct.
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