3. Under the LIFO retail method, which of the following are not included in the

Question

3. Under the LIFO retail method, which of the following are not included in the denominator of the cost-to-retail conversion percentage? A. Freight-in. B. Purchase returns C. Purchases. D. Net markdowns. 4. The IRS LIFO conformity rule states that: A. The FIFO cost flow method does not conform to IRS requirements t flow method is used to compile taxable income, it must also be used in the B. If the LIFO cos C. D. financial statements. If the FIFO cost flow method is used, a company is required to maintain LIFO reserve as a Contra-Account None of the above are correct. 5. Under the retail inventory method: A. A company measures inventory on its balance sheet by converting retail prices to cost. B. A company measures inventory on its balance sheet at current selling prices. C. A company measures inventory on its balance sheet based on the gross profit ratio. D. None of these answer choices are correct.

Explanation / Answer

3) option (A) Freight in

4) Option (B) If the LIFO cost flow method is used to compile taxable income, it must also be used in the financial statements

5) Option (A) A company measures inventory on its balance sheet by converting retail prices to cost.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.