If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest net income?

A) average cost
B) LIFO
C) FIFO
D) weighted average


B

Business

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When determining whether to record an asset as a fixed asset, what two criteria must be met?

A) Must be an investment and must be long lived. B) Must be long lived and must use the asset in a productive manner. C) Must be long lived and must be a tangible asset. D) Must be a tangible asset and must be an investment.

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The "but for" test is useful when two or more forces, each of which is sufficient to bring about the harm in question, are actively operating

a. True b. False Indicate whether the statement is true or false

Business

A force majeure clause is one that provides excuses for nonperformance

Indicate whether the statement is true or false

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Knowledge-based resources tend to be more ________ in nature and therefore they are ________ difficult to protect against loss (i.e., the individual quitting the organization) than other types of capital, such as equipment, machinery, and land.

A. tacit; less B. tacit; more C. explicitly; more D. explicit; less

Business