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- Under the historical cost accounting model the financial statement that is regarded as the most important is: Select one: a. Balance sheet b. Cash flow statement c. Income statement d. They are all equally importantFor which of the following cost flow methods does generally accepted accounting principles require application of the lower-of-cost-or-market rule? Multiple Choice All of these cost flow methods FIFO Specific identification Weighted average LIFOCurrent Cost Concept - Measurement of Elements Why is Accounts Payable one of the elements that is normally presented at current cost? Please explain.
- In current cost financial statements: a. General price level gains or losses are recognized b. Amounts are always statement in common purchasing power c. All items are different from what they would be in a historical cost statement of financial position. d. Holding gains are recognizedWhat is the purpose of Classifying Costs for Financial Statement?How to calculate gross profit percentage will be mItaned
- When valuing inventories at the lower of cost or net realisable value, which one of the following conventions is being applied? O A. Consistency OB. Prudence C. Materiality O D. Accruals C...For external-reporting purposes, GAAP require that net income be based on _______ costing method. a. absorption b. variable c. direct d. semi-variable e. activity basedMark up can be calculated by the formula; a. Markup = Cost + Expenses b. Markup = Cost + Profit c. Markup = Selling price + Cost d. Markup = Expenses + Profit
- Which of the following facilitates the comparison of financial performance with one period to another period is possible ? O a. Historical cost concept O b. Going concern Assumption O c. Matching Concept O d. Consistency PrincipleClassify the Costs for Financial Statements?With respect to cost classifications for preparing financial statements:a. What is the total product cost?b. What is the total period cost?