QUESTION
Which of the following is an advantage of using the LIFO LastIn FirstOut method of inventory valuation?
Results in a lower tax liability during periods of rising prices
Matches the physical flow of inventory
Generally accepted under all accounting frameworks
Provides a more accurate representation of the cost of inventory
QUESTION
The carrying value of inventory on the balance sheet is typically reported at:
Historical cost
Net realizable value
Lower of cost or market value
Replacement cost
QUESTION
The inventory turnover ratio measures:
The average number of days it takes to sell inventory
The number of times inventory is sold and replaced during a period
The profitability of inventory investments
The carrying cost of inventory over a specific period
QUESTION
Which of the following inventory costing methods assumes that both older and newer inventory items are sold in no particular order?
LIFO LastIn FirstOut
FIFO FirstIn FirstOut
Weighted Average Cost
Specific Identification
