152. The primary function of an inventory circulation assumption is to: A. Increase inventory turnover.B. Increase gross profit.C. Determine which unit prices are assigned to inventory and also which are assigned to the price of products marketed.D. Minimize taxable income in the time of periods of climbing prices.

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153. Throughout a duration of steadily increasing prices, which of the adhering to inventory valuation methods is likely to lead to the lowest expense of goods sold? A. LIFO.B. FIFO.C. The retail technique.D. The gross profit method.

 

 

154. The major factor for the popularity of the LIFO circulation presumption is that this method: A. Is many appropriate as soon as each item in inventory is unique.B. Tends to minimize taxable revenue.C. Caprovides inventory to be reported at or close to its current replacement expense.D. Reduces the amount of money "tied up" in inventory.

 

 

155. In a routine inventory system, the price of goods offered is determined by: A. Multiplying net sales for the period by a cost ratio.B. Journal entries made at the moment of each sales transactivity.C. Physically counting the amounts of merchandise sold each day, and also determining the cost of these items at year-finish.D. Subtracting the expense assigned to the finishing inventory from the cost of products accessible for sale in the time of the duration.

 

 

156. Salerno Co. has actually an inventory turnover rate of 7 and also an accounts receivable turnover price of 5. Assuming 365 days in a year, the period of time required for Salerno to convert its inventory into cash via normal business operations is approximately: A. 21 days.B. 52 days.C. 4 months.D. 2.5 months.

 

 

Ace Solution, Inc. provides a perpetual inventory mechanism. The company's start inventory of a particular product and its purchases in the time of the month of January were as follows: 

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 On January 28, Ace Systems sells 18 devices of this product. The various other 12 units reprimary in inventory at January 31.

 

157. Assuming that Ace Solution uses the average price circulation presumption, the cost of goods sold to be recorded at January 28 is: A. $504.B. $336.C. $499.D. Some various other amount.

 

 

158. Assuming that Ace Solution supplies the LIFO flow assump­tion, the cost of items marketed on January 28 is: A. $331.B. $509.C. $499.D. Some other amount.

 

 

159. Assuming that Ace Solution offers the FIFO circulation assump­tion, the cost of goods sold on January 28 is: A. $509.B. $341.C. $499.D. Some other amount.

 

 

160. Assuming that Ace Solution uses the LIFO flow assump­tion, the 12 devices of this product in inventory at January 31 have actually a total cost of: A. $499.B. $331.C. $509.D. Some various other amount.

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161. Assuming that Ace Equipment provides the FIFO circulation assump­tion, the 12 devices of this product in inventory at January 31 have actually a complete price of: A. $341B. $509.C. $499.D. Some other amount.