Answer the following statements true (T) or false (F)
1) In a period of rising costs, the last-in, first-out (LIFO) method results in a higher cost of goods sold and a lower net income than the first-in, first-out (FIFO) method.
2) Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will result in different amounts for cost of goods sold.
3) Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will result in different amounts for sales revenue.
4) Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will result in different amounts for net income.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
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The one who is to receive the specified amount of money from a note is called the
a. maker of the note. b. payee of the note. c. discounter of the note. d. endorser of the note.
Since there is a lack of a profit motive in nonbusiness entities, they do not need information provided by an accounting system
a. True b. False Indicate whether the statement is true or false
Which of the following deal with transaction legitimacy?
a. transaction authorization and validation b. access controls c. EDI audit trail d. all of the above
To increase the margin between selling price and manufacturing cost, a manufacturing company might:
a. negotiate a lower purchase price with suppliers of raw materials. b. substitute more efficient manufacturing equipment for work now done by employees. c. increase selling prices. d. all of the above e. none of the above