See-Saw Ltd Uses Moving Weighted Average for Its Inventory,which Is

question 7

Multiple Choice

See-Saw Ltd uses moving weighted average for its inventory,which is valued at $276 000.It is considering a change to FIFO,which would decrease the valuation to $245 000.Which of the following would be decreased by the change?

• A) cash
• B) cost of goods sold
• C) net profit
• D) no accounts would be decreased.

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Definitions:

Preliminary Proxy Statements

Initial documents distributed to shareholders that outline matters to be voted on during a corporation's upcoming meeting.

SEC

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A set of documents, including financial statements and a prospectus, filed with a regulatory body (like the SEC) to register a new issue of securities for sale to the public.

SEC

Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.