Select all that applyWhich statements are true?Multiple select question.First-in, last-out is one of the titles of inventory methods allowed by GAAP.The inventory method is an assumed cost flow and does not have to correspond with the actual physical flow of goods.The inventory method selected must be based on the physical flow of goods.A grocery store may or may not use the last-in, first-out inventory method.

Select all that applyWhich statement are true? (Select all that apply.)Multiple select question.Specific identification, weighted average cost, LIFO and FIFO are generally accepted costing methods.The inventory costing methods determine the amount of the debit to Cost of Goods Sold and credit to Inventory.The inventory method used must correspond with the actual physical flow of goods.The inventory methods apply to both perpetual and periodic inventory systems.

Which is the best descirbe of the effect of using different inventory method during of the period of rising price, a Using the Last-In, First-Out (LIFO) method will result in higher ending inventory and higher cost of goods sold, thereby showing higher gross profit compared to the First-In, First-Out (FIFO) method. b Using the First-In, First-Out (FIFO) method will result in lower ending inventory and higher cost of goods sold, thereby showing lower gross profit compared to the Last-In, First-Out (LIFO) method. c Using the First-In, First-Out (FIFO) method will result in higher ending inventory and lower cost of goods sold, thereby showing higher gross profit compared to the Last-In, First-Out (LIFO) method. d Using the Weighted Average Cost (WAC) method will always yield the same ending inventory and cost of goods sold figures irrespective of whether prices are rising or falling.

Which of the following statements is correct regarding the use of the first-in first-out (FIFO) method of valuing inventory? A. Cost of sales for the period is calculated using the most recent inventory cost per item. B. Closing inventory consists of goods purchased earlier in the period. C. Closing inventory consists of the most recently purchased goods. D. Cost of sales for the period is calculated using weighted average cost of the goods acquired.

Select all that applyWhich of these inventory accounting methods are acceptable under US GAAP? (Check all that apply.)Multiple select question.LUDOFIDOWeighted averageFIFOSpecific identificationLIFOCount and carry

The inventory method selected by management does not have to correspond to the physical flow of goods to be in accordance with GAAP.True false question.TrueFalse