ACC 231 Study Guide - Final Guide: Inventory Turnover, Net Income, Gross Profit

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11 Oct 2018
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Merchandise inventory includes: all goods owned by a company and held for sale, all goods in transit, all goods on consignment, damaged goods only, all of the above. During a period of steadily rising costs, the inventory valuation method that yields the. 3. lowest reported net income is: specification identification method, average cost method, weighted-average method, fifo method, lifo method. If a period-end inventory amount is reported in error, it can cause a misstatement in: cost of goods sold, gross profit, net income, current assets, all of the above. Is used to measure solvency. a. b: measures how quickly a company turns over its merchandise inventory, validates the acid-test ratio, calculation depends on the company"s inventory valuation method. Management must confront which of the following considerations when accounting for. Items to be included and their cost: costing (valuation) method. b. c, use of lower of cost or market, all of the above.

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