For Each Item Listed in 1 Through 7, Place the Letter

question 11

Essay

For each item listed in 1 through 7, place the letter (a through e) of the accounting effect in the space provided. You may use each letter more than once or not at all.
____ 1. During a period of increasing inventory and rising prices, a company decides to use FIFO instead of LIFO.
____ 2. During a period of increasing inventory and rising prices, a company decides to use averaging instead of FIFO.
____ 3. During a period of increasing inventory and increasing prices, a company uses the LIFO method, which creates the largest cost of goods sold.
____ 4. A company applies lower-of-cost-or-market for valuing ending inventory when market price is less than cost.
____ 5. A company applies lower-of-cost-or-market for valuing ending inventory when cost is less than market price.
____ 6. During an extended period of constant prices, a company adopts LIFO instead of FIFO.

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Definitions:

Swiss

Pertaining to Switzerland or its people, culture, or characteristics.

Egyptian

Pertaining to Egypt, its people, culture, or heritage.

Gender Differences

The distinctions in characteristics, behaviors, and roles typically associated with being male or female in a society.

Communication

The process of exchanging information, thoughts, messages, or feelings between individuals or groups through various modes or mediums.