Question : 11.LIFO usually provides a better match of revenue and expense : 1412706

 

 

11.LIFO usually provides a better match of revenue and expense than does FIFO. 
 
 

 

 

 

12.Unit LIFO is more costly to implement than dollar-value LIFO. 
 
 

 

 

 

13.LIFO liquidation profits occur when inventory quantity declines and costs are rising. 
 
 

 

 

 

14.The gross profit ratio is calculated by dividing gross profit by average inventory. 
 
 

 

 

 

15.Dollar-value LIFO eliminates the risk of LIFO liquidations. 
 
 

 

 

 

16.A company that prepares its financial statements according to International Financial Reporting Standards can use all of the same inventory valuation methods as a company that prepares its statements under U.S. GAAP. 
 
 

 

 

 

Multiple Choice Questions
 

17.In a perpetual inventory system, the cost of purchases is debited to: 
 
 

A.Purchases.

 

B.Cost of goods sold.

 

C.Inventory.

 

D.Accounts payable.

 

 

 

 

18.In a periodic inventory system, the cost of purchases is debited to: 
 
 

A.Purchases.

 

B.Cost of goods sold.

 

C.Inventory.

 

D.Accounts payable.

 

 

 

 

19.In a perpetual inventory system, the cost of inventory sold is: 
 
 

A.Debited to accounts receivable.

 

B.Credited to cost of goods sold.

 

C.Debited to cost of goods sold.

 

D.Not recorded at the time goods are sold.

 

 

 

 

20.In a periodic inventory system, the cost of inventories sold is: 
 
 

A.Debited to accounts receivable.

 

B.Credited to cost of goods sold.

 

C.Debited to cost of goods sold.

 

D.Not recorded at the time goods are sold.