Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income taxes are paid b. In periods of rising prices, more holding gains are reported in net income c. Record keeping and financial statement preparation are easier d. Conservative income statement and balance sheet disclousures result from falling prices

A firm's market-to-book ratio might be greater than 1.0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is   a. straight-line methods of depreciation.     b. using LIFO versus FIFO for inventory.     c. level 1 fair values.     d. off-balance-sheet assets arising from investments in successful research and development programs that are expensed according to conservative accounting principles.

which one is correct please confirm? QUESTION 9 In using the percentage of sales forecasting method, the assumption is that ______________.   a. there is a direct relationship between notes payable and sales   b. accounts payable will not increase proportionally with sales   c. there is a direct relationship between long-term debt and sales   d. inventories will increase proportionately with sales

If CBA Failed to meet earning expectations because Loan Impairment expense was Higher than expected, the ERC is likely to be? A. Small, as imperfections are 'fictitious accounting' B. Big, as markets dislike impairments more than other forms of expenses C. Small, because impairment represents once off expense D. Very large, because loan impressions account for a significant portion of the revenue

Required: a. Explain why "better matching" occurs with LIFO. 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?

Which of the following is not a factor in producing earnings forecasts?  a) Estimating the level of dividends b) Separation of recurring and nonrecurring components c) Recognizing potential earnings management d) Recognizing potential income smoothing

When inventory is adjusted down, what is the impact on the balance sheet? a. The value of the asset, Merchandise Inventory, is restated at a more conservative number. b. The value of the asset, Merchandise inventory, is increased to reflect a more optimistic outlook. c. The value of the liability, Selling Expense, would be decreased to reflect a more conservative outlook. d. The value of the liability, Operating Expenses, would be increased to reflect the loss.   You are an accountant for ACME Corporation working on inventory valuation. What would prevent you from using LCNRV to adjust the value of your inventory? a. If ACME uses NIFO. b. If ACME uses LIFO to cost inventory. c. If ACME uses FIFO to cost inventory. d. If the Cost of Goods Sold exceeds last quarter’s COGS.

An example of asymmetric information in financial markets is that A. the borrower knows more than the lender. B. the lender knows more than the borrower. C. the borrower has a long-term goal while the lender has a short- term goal. D. the borrower and lender have different expectations about financial markets.

Which of the following would not be used as a summary performance measure when using market multiples to determine value?     Stock price     Net operating assets     Net operating profit after tax     Book value

1 When examining the current ratio and looking at the company's liquidity, which of the following ratios would NOT assist with evaluating liquidity?   A) inventory turnover   B) receivables turnover   C) quick ratio   D) profit margin