Matching
match each item listed with the accounting effect You may use each choice more than once or not at all.
Premises:
A company applies lower-of-cost-or-market for valuing ending inventory when cost is greater than market price.
During an extended period of constant prices, a company uses LIFO instead of FIFO.
Responses:
Current ratio and earnings per share increase.
Current ratio and earnings per share decrease.
Current ratio increases and earnings per share decreases.
Current ratio decreases and earnings per share increases.
Current ratio and earnings per share are not affected.
Correct Answer:
Premises:
Responses:
Current ratio and earnings per share increase.
Current ratio and earnings per share decrease.
Current ratio increases and earnings per share decreases.
Current ratio decreases and earnings per share increases.
Current ratio and earnings per share are not affected.
Premises:
Current ratio and earnings per share increase.
Current ratio and earnings per share decrease.
Current ratio increases and earnings per share decreases.
Current ratio decreases and earnings per share increases.
Current ratio and earnings per share are not affected.
Responses:
Related Questions
Q106: Washington Co. mistakenly omitted $4,000 of merchandise
Q107: What is the impact on the financial
Q108: Cagey Trading Inc. counted $2,000 of inventory
Q109: A company deliberately and inappropriately included interest
Q110: Gump Supplies has the following information:<br>
Q111: Forrest's Crab House purchased Florida stone
Q112: During a year of decreasing prices and
Q114: The chief investment officer of a large
Q115: Which of the following should not be
Q116: Use the information that follows concerning