Q1. A U.S. company uses the LIFO method to value its inventory for their income tax return. For its financial statements prepared for shareholders, the company may: A) use any other inventory method under generally accepted accounting principles (GAAP). B) only use the LIFO method. C) use the FIFO method, but must disclose a LIFO reserve.
Q2. Which of the following statements regarding first in, first out (FIFO) is least accurate? A) Ending inventory consists of the cost of the most recent purchases. B) Items sold are a mix of the cost of the purchases. C) Cost of goods sold consists of the costs of the first purchases.
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发表于 2009-1-17 09:08
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