Question

31. When using a perpetual inventory system, a. no Purchases account is used. b. a Cost of Goods Sold account is used. c. two entries are required to record a sale. d) All of these answer choices are correct sold for 2017, net income for 2017, and assets at December 31, 2018, respectively, are a. overstatement, understatement, overstatement. 32. If the beginning inventory for 2017 is overstated, the effects of this error on cost of goods overstatement, understatement, no effect. C. understatement, overstatement, overstatement. d. understatement, overstatement, no effect vnorostng mothod most closely approximates current cost for each of the Ending Inventory Cost of Goods Sold 33. Which following FIFO FIFO LIFO LIFO FIFO LIFO FIFO LIFO b. d. 34. An in the ending rypricing procedure in which the oldest costs incurred rarely have an effect on a. FIFO. b. LIFO. c. base stock. d. weighted-average. 35. I n a period of rising prices, the inventory method which tends to give the highest reported net income is a. base stock. b. first-in, first-out. c. last-in, first-out d. weighted-average. 36. In a period of rising prices, the inventory method which tends to give the highest reported inventory is a. FIFO b. moving average. c. LIFO d. weighted-average. 37. In a period of rising prices, the inventory method which tends to give the highest reported cost of goods sold is a. FIFO

Answer 1

31	In prepetual we record two entries for sale , no purhcase account is theere and cost of goods sold accounts is used
	So correct answer is D all the above
32	Beginning inventory is overstated
	Then cost of goods sold is overstated
	net income is understated
	no effect on ending inventory so no effect on assets
	So correct answer is B
33	FIFO for ending inventory
	LIFO for cost of goods sold
	So correct answer is B
34	Oldest cost incurred will not be part of ending inventory in FIFO method
	So correct answer is A
35	As prices are rising so net income income will increase in FIFO method
	As oldest inventory with low cost will be used in cost of goods sold
	So correct answer is B
36	As prices are rising inventory will increase in FIFO method
	As latest inventory with high cost will be used in Inventory
	Correct answer is A