that understates the finishing inventory will cause the price ofgoods sold for the period to it is in understated.

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in the finishing inventory the the current period will have noeffect ~ above net earnings of the next audit period.

that understates the finishing inventory will reason net earnings forthe period to be overstated.

that understates the finishing inventory will cause assets come beunderstated.

3.Wholesome Ltd. Has a job in inventory ratio of 50 and also averageinventory the $320,000. What is its cost of products sold?

cannot be determined

$16,000,000

$2,191,780

$2,336,000

4.the managers of Winning means Ltd. Get performance bonusesbased ~ above the company’s net income. I beg your pardon inventory price formula arethey likely to favour in periods of decreasing prices?

Average cost.

FIFO.

Need much more information to answer.

They would have no preference.

5.

Which among the adhering to statements is true?

Depreciation is a valuation concept; the is, us allocate coststo reflect the actual adjust in the value of the asset.

The adjusting entry because that unearned earnings results in anincrease come a liability account and a decrease to a revenueaccount.

Expiration that one month of an insurance plan paid in advance,initially taped by debiting Prepaid Insurance, results in anadjusting entry the reduces the company"s liabilities.

Adjusting entries never influence cash.

None of the over is true.

6.Under a perpetual inventory mechanism

there is no need for a year-end physics count.

the account purchase Returns and also Allowances is attributed whengoods are went back to vendors.

increases in inventory resulting from purchases are debited toPurchases.

accounting records continuously disclose the lot ofinventory.

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