Which one of the following statements is false?
A) Under conditions of rising prices, the LIFO method results in lower income than the FIFO method.
B) In most cases, the FIFO method approximates the physical flow of items in inventory.
C) The LIFO method produces a higher ending inventory value than the FIFO method.
D) The FIFO method includes holding gains in income.
C
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An additional partner review of the audit and its findings is typically performed by an experienced member of the firm. Which of the following individuals is most qualified to perform this concurring partner review?
a. The engagement partner who has worked on the client for three years. b. An employee of the enforcement division of the SEC. c. An experienced partner of the firm who did not actively participate on the audit. d. A partner of another firm or office who knows the client well and who was a vital member of the audit team.
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales$935,000?Variable expenses$411,500???Fixed manufacturing expenses$349,000?Fixed selling and administrative expenses$256,000???All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $213,500 of the fixed manufacturing expenses and $124,500 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. What would be the financial advantage (disadvantage) from dropping product D74F?
A. ($185,500) B. ($81,500) C. $81,500 D. $185,500
Silverman Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher MIRR rather than the one with the higher NPV, how much value will be forgone? Note that under some conditions choosing projects on the basis of the MIRR will cause $0.00 value to be lost. r: 8.75% Year0 1 2 3 4 CFS ?$1,100 $375 $375 $375 $375 CFL ?$2,200 $725 $725 $725 $725
A. $32.12 B. $35.33 C. $38.87 D. $40.15 E. $42.16
Estimation methods are also referred to as
A. prediction methods. B. clustering methods. C. association methods. D. supervised methods.