For Each of the Following Statements, Determine Which Method of Inventory

question 24

Essay

For each of the following statements, determine which method of inventory valuation (FIFO or LIFO) it depicts.
1. ___________________ The item sold is assigned a cost.
2. ___________________ The ending inventory is higher under this method when costs are rising.
3. ___________________ The cost of goods sold is higher under this method when costs are rising.
4. ___________________ When prices are rising, this method results in higher net income.
5. ___________________ If this method is used for federal tax purposes, it must also be adopted for it financial accounting.
6. ___________________ This method is not accepted in some countries.
7. ___________________ When prices are rising, the average cost method will result in an ending inventory that is higher than which method?

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Definitions:

PVR

Stands for Personal Video Recorder, a device that records and stores television programs to a hard drive or other media for later viewing.

Hockey Game

A competitive sport played on ice (or field, in variation) in which two teams use sticks to hit a puck (or ball) into the opposing team's goal.

Mnemonic Devices

Techniques a person can use to help them improve their ability to remember something, often by enhancing the memory through vivid associations.

Concrete Words

Words that refer to objects, actions, or events that can be directly perceived by the senses, making them easier to visualize or understand.