Which if the following inventory method measures most closely the current inventory?
A. FIFO
B. Specific identification
C. Wighted average
D. LIFO
Answer: A. FIFO
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Inventory Cost Flow
- Which of the following cost flow assumptions is used for inventory when an entity builds townhouses?
- Which of the following is likely to be a circumstances where the specific identification method can be used?
- Which is the reason why specific identification method may be considered ideal for assigning cost to inventory and cost of goods sold!
- The cost of inventories that are not ordinarily interchangeable and goods or services produced and segregated for specific projects shall be measured using
- The costing of inventory must be deferred until the end of reporting period under which of the following method of inventory valuation?
- In a period of falling prices, which inventory method generally provides the highest amount of net income?
- In a period of falling prices, which inventory method generally provides lowest amount of ending inventory?
- In a period of declining prices, the inventory method which tends to give the highest amount of costs of goods sold is
- What is the inventory pricing procedure in which the oldest costs rarely have an effect on the ending inventory?
- IFRS prohibits which of the following cost flow assumptions?
- Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of goods sold using the FIFO method exceeds cost of goods sold using the average cost method?
- The inventory cost was lower using FIFO than LIFO. If there is no beginning inventory, what direction did the cost of purchases move during the period?
- During periods of rising prices, when the FIFO inventory cost flow method is used, a perpetual inventory system would
- Cost of goods sold is the same under a periodic system as under a perpetual system when an entity uses
- Which method of inventory pricing best approximates specific identification of the actual flow of costs and units?
- Which inventory cost flow assumption provides the best measure of earnings, where "best" means most appropriate for predicting future earnings, when prices have been declining?
- In the period of rising prices, the inventory cost allocation that tends to result in the lowest reported net income is
- In a period of falling prices, the use of which inventory cost flow method would typically result in the highest cost of goods sold?
- Which inventory cost flow assumption would consistently results in the highest income in a period sustained inflation?
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