Which of the following statements regarding LIFO is incorrect?
A) The last units in are assumed to be the first units sold.
B) Ending inventory comes from the most recent purchases.
C) This method leaves the oldest costs in ending inventory.
D) LIFO is an assumption about how costs flow.
B) Ending inventory comes from the most recent purchases.
You might also like to view...
For the past 40 years Bhutan, a kingdom of 754,000 people in the Himalaya mountains, has relied on the following measure:
A) GNI. B) GDP. C) GNH. D) GNP. E) GTE.
Which theorist developed the four-component model of ethical behavior?
A. Lawrence Kohlberg B. James Rest C. Patricia Werhane D. Rushworth Kidder
The beginning Merchandise Inventory balance totals $40,000, and the ending Merchandise Inventory balance totals $45,000 . The adjusting entry for the beginning inventory will:
a. debit Merchandise Inventory and credit Income Summary for $40,000. b. debit Merchandise Inventory and credit Income Summary for $45,000. c. debit Income Summary and credit Merchandise Inventory for $40,000. d. debit Income Summary and credit Merchandise Inventory for $45,000. e. debit Capital and credit Merchandise Inventory for $40,000.
What is the principle of comity? What conditions must usually exist for the principle to be applied?