What is the retail method of inventory estimation

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Problem 1: What is the retail method of inventory estimation that considers net mark-up but does not include net markdown in determining cost ratio?

A. FIFO

B. Conservative

C. Average cost

D. Historical cost

E. none of the above

Problem 2: What will happen if a financial asset classified as FVOCI is sold during the year:

A. the gain or loss on sale is recognized in profit or loss

B. the gain or loss on sale is recognized directly in equity

C. the cumulative unrealized gains or losses on the investment are transferred directly to retained earnings

D. profit in the year of sale is increased if the selling price exceeds the acquisition cost of the investment

E. B and C

Problem 3: DJ sells merchandise at a gross profit of 25% based on cost. The corporation's cost ratio based on sales should be:

A. 100%

B. 80%

C. 75%

D. 20%

E. none of the above

Reference no: EM132815041

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