Swing Ltd Uses FIFO for Its Inventory, Which Is Valued

question 5

Multiple Choice

Swing Ltd uses FIFO for its inventory, which is valued at $21 000. It is considering a change to moving weighted average, which would change the valuation of inventory to $22 500. Which of the following would be decreased by the change?

• A) Cost of goods sold
• B) Sales
• C) Liabilities
• D) Retained profits

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Definitions:

Auditory Rhythm

Temporal patterns in sound that are perceived by the auditory system, important in music and speech processing.

Reversible Figure

A visual pattern that easily allows more than one interpretation, in some cases changing the specification of figure and ground, in other cases changing the perceived organization in depth.

Lighter

A portable device used to generate a flame for the purpose of lighting something, such as a cigarette or candle.

Darker

Having very little light, not bright, or closer to black in color.