Question

The primary reason for the popularity of LIFO is that it gives: Better matching of physical flow and cost flow. A lower income tax obligation simplified recordkeeping A simpler method to apply Merchandise sold FOB shipping point indicates that: The seller holds title until the merchandise is received at the buyer's location. The merchandise has not yet been shipped. The merchandise will not be shipped until payment has been received The seller transfers title to the buyer once the merchandise is shipped. Suppose Company A places an order with Company B on May 12. On May 14, Company B ships the ordered goods to Company A with terms FOB destination. The goods arrive at Company A on May 17. Company A begins selling the goods to customers on May 19 and pays Company B on May 20. When would Company B record the sale of goods to Company A? May 12 May 14 May 19 May 17 If a company understates its ending balance of inventory in year 1 and states its inventory correctly in year 2, which one of the following is true? Net income is overstated in year 1. Cost of goods sold is understand in year 2. Net income is understated in year 2. Retained earnings is understand in year 2. A building might be depreciated over fifteen years because income tax provisions require depreciation over fifteen years. it has a fifteen year mortgage. it is expected to help generate revenue for the company over fifteen