136)The balance sheet of Subsidiary Co. shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and the fair...

Purchase

20

4

  195) what is ending inventory using FIFO cost flow assumptions?

A) $70.                             B) $110.                          C) $55.                            D) $170.

196) The following information pertains to ABC: March 1 Beginning inventory = 30 units @ $5 March 3 Purchased 15 units @ $4

March 9 Sold 25 units @ $8

What is the cost of goods sold for ABC assuming it uses LIFO?

A) $125.                           B) $85.                             C) $110.                          D) $100.

197) For a journal entry with only two lines, the following entry is valid: Increase in Liability, Decrease in Dividends.

A) False                                                                      B) True

198) If over the year the selling price of inventory increases, but the cost of the inventory remains constant

A) LIFO net income will be greater than FIFO net income

B) LIFO net income will be less than FIFO net income

C) LIFO net income will be identical to FIFO net income

199) A company overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?

A) Cannot be determined given the information provided.

B) Understate cost of goods sold.

C) Overstate cost of goods sold.

D) Have no effect on cost of goods sold.

200) Window Dressing is done by

A) Financial Analysts                                               B) Managers

C) Accountants                                                        D) Auditors