that understates the finishing inventory will reason the expense ofgoods marketed for the period to be understated.

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in the ending inventory of the current period will have actually noeffect top top net earnings of the next bookkeeping period.

that understates the ending inventory will cause net revenue forthe duration to be overstated.

that understates the ending inventory will reason assets to beunderstated.

3.Wholesome Ltd. Has a job in inventory ratio of 50 and averageinventory of $320,000. What is its cost of items sold?

cannot it is in determined

$16,000,000

$2,191,780

$2,336,000

4.the managers of Winning means Ltd. Obtain performance bonusesbased ~ above the company’s net income. I m sorry inventory cost formula arethey most likely to favour in periods of decreasing prices?

Average cost.

FIFO.

Need much more information come answer.

They would have no preference.

5.

Which one of the following statements is true?

Depreciation is a valuation concept; that is, us allocate coststo reflect the actual adjust in the value of the asset.

The adjusting entry for unearned profits results in anincrease come a legal responsibility account and a decrease come a revenueaccount.

Expiration of one month of an insurance plan paid in advance,initially taped by debiting Prepaid Insurance, results in anadjusting entry the reduces the company"s liabilities.

Adjusting entries never influence cash.

None of the over is true.

6.Under a perpetual inventory device

there is no need for a year-end physics count.

the account acquisition Returns and also Allowances is credited whengoods are returned to vendors.

increases in inventory resulting from purchases space debited toPurchases.

accounting documents continuously disclose the amount ofinventory.

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