Match the inventory method with its related characteristic. Assume a period of rising pricesin all cases.1. LIFO2. FIFO3. Weighted Average4. Specific IdentificationWill result in reporting the highest net[Choose ]incomeWill result in showing the highest[Choose]reported inventoryTends to smooth out the effects of[Choose]inflationWill result in reporting the highest Cost ofGoods Sold[Choose]Used where it is practical to physicallyseparate the different purchases made[Choose]6. Will result in matching current costs[Choose]

The objective of the question is to match the inventory valuation methods (LIFO, FIFO, Weighted…

Answered: Match the inventory method with its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Compared to using the weighted average cost method to account for inventory, during aperiod in which prices are generally rising, the current ratio of a company using the FIFOmethod would most likely be:A. lower.B. higher.C. dependent upon the interaction with accounts payable.
What is the ending inventory value?
What is the dollar-value method of LIFO inventory valuation?What advantage does the dollar-value methodhave over the specific goods approach of LIFO inventoryvaluation? Why will the traditional LIFO inventory costingmethod and the dollar-value LIFO inventory costingmethod produce different inventory valuations if thecomposition of the inventory base changes?
Explain the differences between a Perpetual Inventory system and a Periodic Inventory System. Explain how one is better than the other.
An increasing inventory turnover ratioa. Indicates a longer time span between the ordering andreceiving of inventory.b. Indicates a shorter time span between the ordering andreceiving of inventory.c. Indicates a shorter time span between the purchase andsale of inventory.d. Indicates a longer time span between the purchase andsale of inventory.
DONT GIVE ANSWER IN IMAGE FORMAT
The costs of ending inventory is similar under both periodic and perpetual inventory system if _________________ method is used. a. first-in, first-out (FIFO) b. standard cost c. weighted average d. last-in, first-out (LIFO)
During periods when costs are rising and inventory quantities are stable, cost of goods sold will be: Multiple Choice Lower under average cost than LIFO. Higher under FIFO than average cost. Lower under LIFO than FIFO. Higher under FIFO than LIFO.
Proponents of the LIFO inventory cost flow assumption argue that this costing method is superior to the alternatives because it results in better matching of revenue and expense. Required: a. Under LIFO, the release of the most recent purchase costs to the Cost of Goods Sold account results in better matching of revenue and expense. b. What is the impact on the carrying value of inventory in the balance sheet when LIFO rather than FIFO is used during periods of inflation? a. b. It understates the value of inventory in the balance sheet. It overstates the value of inventory in the balance sheet.
In order to get the lowest profits possible in periods of rising inventory costs, the company should use which of the following inventory costing methods? Group of answer choices Average cost Specific identification FIFO LIFO
2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes. B. Which inventory method would best meet Shepherd's goal? Enter answer here. C. What if Shepherd wanted to expense out the newer purchases of goods instead? Which inventory would best meet that need? Enter answer here.
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