In a period of rising costs, which inventory valuation method would a company likely choose if they want to have the highest possible balance of inventory on the balance sheet?
A) Weighted-average cost.
B) FIFO.
C) LIFO.
D) Periodic.
Which of the following is a negative sign that a company is not selling its inventory quickly?
A high inventory turnover ratio.
Both a high inventory turnover ratio and a low average days in inventory.
A low average days in inventory.
A low inventory turnover ratio.
Sales revenue $440,000
Advertising expense 60,000
Interest expense 10,000
Salaries expense 55,000
Utilities expense 25,000
Income tax expense 45,000
Cost of goods sold 180,000
298) What is net income?
A) $120,000.
B) $65,000.
C) $110,000.
D) $60,000.
When a firm gets riskier what will happen to its bonds
the stated interest rate of the bonds will go down
the stated interest rate of the bonds will not change
there is no definite answer
the stated interest rate of the bonds will go up
For a journal entry with only two lines, the following entry is valid: Decrease in Owners' Equity, Increase in Dividends.
A) False
B) True

In a period of rising costs, which inventory valuation method would a company likely choose if they want to have the highest possible balance of inventory on the balance sheet?

B) FIFO.

When the inflation rate is high, the FIFO method reduces cost of goods sold and increases ending inventory.

Which of the following is a negative sign that a company is not selling its inventory quickly?

A low inventory turnover ratio.

The inventory turnover ratio is a good measurement of how fast a company is selling the goods it has in its inventory, so the higher, the better.

Sales revenue $440,000

Advertising expense 60,000

Interest expense 10,000

Salaries expense 55,000

Utilities expense 25,000

Income tax expense 45,000

Cost of goods sold 180,000

298) What is net income?

B) $65,000.

net income = $440,000 - $180,000 - $55,000 - $60,000 - $25,000 - $10,000 - $45,000 = $65,000