Reference no: EM132650503

Question 1: If inventory original cost is $4,000, estimated selling price is $3,500, estimated selling expense is $200, using the LCM method, inventory is valued at:

Select one:

A. $4,000
B. $3,500
C. $200
D. $3,300

Question 2: Petty Cash is reserved for small purchases or repairs that do not cost a lot of money around the office

Select one:

• True
• False

Question 3: When prices increase, FIFO reports higher gross profit and net income than LIFO.

Select one:

• True
• False

Question 4: In a period of rising prices, the FIFO method of costing inventory results in income tax savings for companies.

Select one:

• True
• False

Question 5: A Credit memo is a note from a seller indicating its intent to credit a customer's accounts receivable.

Select one:

• True
• False