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Had posted these earlier but for some reason didnt fully post not sure what went wrong. For these question I have began but I dont feel so sure and they have been the ones that have been giving me the most problems and I would really appreciate the help.

ACC 101-Unit #3 Study Guide Studert l. A company should always keep extra inventory on hand; it could be nceded if demand increases and it has to ht sooner or later so it adds nothing to cost True (False Inappropriate inventory levels reduce a company's net income, either by increasing cost or reducing True False 3. Most changes in sales revenue have no effect on cost of goods sold. True false 4. In positive net income. unting period, a manager can select the inventory costing method that yields the most 5 The lower the inventory turnover ratio, the more efficiently the company manages its inventory, all other equal. True) False 6. Which of the following statements regarding inventory classifications is A. Inventory may include materials used in producing goods for sale. B. Companies that are both manufacturers and merchandisers must list their finished goods inventory and merchandise inventory separately C. Both A) and B) above are true. D. Neither A) nor B) above is true (are) true? 7. Which of the following statements regarding inventory management is (are) true? A. The LIFO method assumes that the costs for the newest goods (the last ones in) are used first and the older costs are left in ending inventory B. During a period of rising prices, LIFO results in a lower income tax expense than does FIFO C. Both A) and B) above are true. D. Neither A) nor B) above is true. 8. Which of the following statements regarding the lower of cost or market rule is (are) true? A. The lower of cost or market rule sometimes causes the book value of inventory to be lowered below cost ill never cause the book value of inventory to be raised above cost. B. The failure to estimate the market value of inventory appropriately when applying the lower of ket rule C. Both A) and B) above are true. is one of the more common types of financial statement misstatements D. Neither A) nor B) above is true

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