23) The gross profit percentage is an indication of how:
well management is controlling expenses.
measures the percentage of profit earned on each dollar ofsales.
much cash is generated per dollar of sales.
efficient management is in utilizing assets.
26) Which of the following statements about inventoryclassifications is not correct?
Inventory may include materials used in producing goods forsale.
Manufacturers hold three types of inventory that are referred toas raw materials inventory, work in process inventory, and finishedgoods inventory.
Inventory is classified as a long-term asset on the balancesheet.
Merchandisers buy inventory in finished form ready forresale.
27) In a period of rising prices, the inventory costing methodthat will cause the company to have the lowest cost of goods soldis:
LIFO.
FIFO.
Weighted average.
Specific identification.
28) In a period of falling prices, the inventory costing methodthat will cause the company to have the lowest cost of goods soldis:
LIFO.
FIFO.
Weighted average.
Specific identification.
23) The gross profit percentage is an indication of how:
well management is controlling expenses.
measures the percentage of profit earned on each dollar ofsales.
much cash is generated per dollar of sales.
efficient management is in utilizing assets.
26) Which of the following statements about inventoryclassifications is not correct?
Inventory may include materials used in producing goods forsale.
Manufacturers hold three types of inventory that are referred toas raw materials inventory, work in process inventory, and finishedgoods inventory.
Inventory is classified as a long-term asset on the balancesheet.
Merchandisers buy inventory in finished form ready forresale.
27) In a period of rising prices, the inventory costing methodthat will cause the company to have the lowest cost of goods soldis:
LIFO.
FIFO.
Weighted average.
Specific identification.
28) In a period of falling prices, the inventory costing methodthat will cause the company to have the lowest cost of goods soldis:
LIFO.
FIFO.
Weighted average.
Specific identification.