Question

QUESTION 21 Intangible assets include patents, copyrights, and franchises. True False

Answer 1

Question 21:

True - Intangible assets cannot be seen, touched etc. Examples are copy rights, patents, goodwill etc

Question 22:

FIFO - First in First Out. In this the oldest inventories are sold first. During rising prices, FIFO gives lower COGS.

LIFO - Last in First Out. In this the newest inventories are sold first. During rising prices, LIFO gives higher COGS.

Question 23:

Segregation of duties mean separating the accounting functions of authorization, custody, and recording to minimize an employee's ability to commit fraud.

Qiestion 24:

Net realizable value is the sum of amount which is receivable by company, normally from customers/debtors. It is calculated as Accounts receivables minus allowance for bad debts.