Jasper Owns a Small Retail Store as a Sole Proprietor

question 17

Multiple Choice

Jasper owns a small retail store as a sole proprietor.The business records show that the cost of the store's inventory items has been steadily increasing.The cost of the end of the year inventory is $200,000 and the cost of the beginning of the year inventory was $250,000.Jasper uses the FIFO method of inventory valuation.Which of the following statements is true?

• A)Jasper purchased more inventory during the year than he sold during the same one-year period.
• B)Jasper would have a higher net income if he used the LIFO method of inventory valuation instead of the FIFO method.
• C)Jasper has apparently decreased the volume of items in his ending inventory as compared to the number of items in his beginning inventory.
• D)Since the cost of the store's inventory items is increasing, Jasper will have a greater cost of goods sold figure under FIFO than LIFO.
• E)None of the above.

---

Definitions:

Epistasis

An interaction between genes where the presence or absence of alleles of one gene influences the expression of another gene.

Alleles

Alleles are alternative forms of a gene that arise by mutation and are found at the same place on a chromosome, contributing to genetic variation in populations.

Locus

A precise, definite location on a chromosome that is the site of a specific gene or genetic marker.

Dominant Traits

Genetic characteristics that are expressed in an organism's phenotype even when only one copy of the gene responsible for the trait is present.