Blake Company purchased two identical inventory items. The item purchased first cost $19.00, and the item purchased second cost $20.00. Blake sold one of the items for $34.00. Which of the following statements is true?
A. The dollar amount assigned to ending inventory will be the same no matter which inventory cost flow method is used.
B. Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.
C. Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method.
D. Cost of goods sold will be higher if Blake uses the FIFO rather than the weighted-average inventory cost flow method.
Answer: B
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Which of the following statements is true regarding accrual accounting?
A. Revenue is recorded only when cash is collected. B. Revenue is recorded in the period when it is earned. C. Revenue is recorded in the period when it is earned and expenses are recorded when they are incurred. D. Expenses are recorded when they are incurred.
Combining negatively correlated assets can reduce the overall variability of returns
Indicate whether the statement is true or false
Kalyan Corporation uses the FIFO method in its process costing system. Operating data for the Enameling Department for the month of May appear below: UnitsPercent Complete with Respect to ConversionBeginning work in process inventory1,20020%Transferred in from the prior department during May58,000 Ending work in process inventory6,60070% What were the equivalent units of production for conversion costs in the Enameling Department for May?
A. 52,600 B. 57,220 C. 63,400 D. 56,980
Which of the following best defines the essential task of self-reporting?
A) to define values and ethical standards in the workplace B) to document the company's actions regarding corporate social responsibility to its stockholders C) to donate profits or resources to socially conscious and environmental organizations D) to submit all financial accounts to public scrutiny E) to use social media to promote awareness of and raise funds for worthy causes