Question 11 (i) During periods of inflation,_______________ may maximize net income of a merchandising company. A: Average Cost Assumption B: FIFO Assumption C: Specific Identification D: None of the above (ii) Purchase of _____________ is/are NOT considered as investing activities. 1. Other companies' shares 2. Company's own stock 3. Land 4. Inventory A: 2 only B: 2 and 3 C: 2 and 4 D: 2, 3 and 4
Question 11 (i) During periods of inflation,_______________ may maximize net income of a merchandising company. A: Average Cost Assumption B: FIFO Assumption C: Specific Identification D: None of the above (ii) Purchase of _____________ is/are NOT considered as investing activities. 1. Other companies' shares 2. Company's own stock 3. Land 4. Inventory A: 2 only B: 2 and 3 C: 2 and 4 D: 2, 3 and 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 11
(i) During periods of inflation,_______________ may maximize net income of a merchandising company.
A: Average Cost Assumption
B: FIFO Assumption
C: Specific Identification
D: None of the above
(ii) Purchase of _____________ is/are NOT considered as investing activities.
1. Other companies' shares
2. Company's own stock
3. Land
4. Inventory
A: 2 only
B: 2 and 3
C: 2 and 4
D: 2, 3 and 4
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