For each of the following Notes

  • For each of the following questions, select the best answer by circling the corresponding letter choice

    http://assignment.store/for-each-of-the-following-questions-select-the-best-answer-by-circling-the-corresponding-letter-choice/\n\nMultiple Choice (15 points)\n\nFor each of the following questions, select the best answer by circling the corresponding letter choice.\n\nNo credit will be given for questions with more than one answer circled.\n\n1. Which of the following businesses is most likely to use the specific identification method for determining\n\ncost of goods sold?\n\na. Hardware store.\n\nb. Grocery store.\n\nc. Car dealership.\n\nd. Roofing company.\n\n2. When prices are rising,\n\na. LIFO will result in lower net income and a lower ending inventory than FIFO.\n\nb. LIFO will result in lower net income and a higher ending inventory than FIFO.\n\nc. LIFO will result in higher net income and a lower ending inventory than FIFO.\n\nd. LIFO will result in higher net income and a higher ending inventory than FIFO.\n\n3. The primary reason for the popularity of LIFO is that it gives\n\na. better matching of physical flow and cost flow.\n\nb. a lower income tax obligation when inventory costs are rising.\n\nc. simplified recordkeeping.\n\nd. a simpler method to apply.\n\n4. Under U.S. GAAP, a long-term asset is initially recorded at the\n\na. acquisition cost of the asset only.\n\nb. appraised value of the asset.\n\nc. acquisition cost of the asset, but subsequently adjusted up or down to appraised value.\n\nd. acquisition cost of the asset plus all costs necessary to get the asset ready for its intended use.\n\n5. The carrying value of an asset is equal to the\n\na. asset's market value less its historical cost.\n\nb. asset's cost less accumulated depreciation.\n\nc. replacement cost of the asset.\n\nd. asset’s cost less estimated residual value.\n\n6. The balance in the accumulated depreciation account represents\n\na. the amount charged to depreciation expense since the acquisition of the asset.\n\nb. a contra-expense account.\n\nc. a cash fund to be used to replace long-term assets.\n\nd. the amount charged to depreciation expense in the current period.\n\n7. For an investment in available-for-sale securities, the receipt of a cash dividend would be reported as\n\na. a reduction from retained earnings.\n\nb. an increase in the investment account.\n\nc. a reduction in the investment account.\n\nd. dividend revenue on the income statement. 8. Which of the following methods of accounting for investments is appropriate when the investor cannot\n\nexercise significant influence over the investee?\n\na. Equity method.\n\nb. Consolidation.\n\nc. Cost method.\n\nd. Fair value method.\n\n9. U.S. GAAP requires firms holding investments classified as trading securities to report unrealized holding\n\ngains and losses on the investments\n\na. in the income statement."},{"left":"","right":""},{"left":"","right":""},{"left":"","right":""}]


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