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  3. a grocery store must use fifo to value its invento

A grocery store must use FIFO to value its inventory because grocery stores generally sell...

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Accounting

  1. A grocery store must use FIFO to value its inventory because grocery stores generally sell older inventory items before selling newer inventory items.
    1. True
    2. False
  2. Both cost of goods sold and ending inventory are valued at AVERAGE costs under the ___cost flow assumption
    1. Weighted Average
    2. FIFO
    3. LIFO
    4. Specific Identification
  3. Cost of goods sold is valued at NEWER costs and ending inventory is valued at OLDER costs under the ____cost flow assumption.
    1. LIFO
    2. Weighted average
    3. Specific Identification
    4. FIFO
  4. Target purchases plastic Halloween pumpkins for $5 each. Target believes that the pumpkins will sell for $10 each. The pumpkins should be valued at ____on Target's balance sheet.
    1. $10 each
    2. $5 each
  5. If costs are rising, the LIFO cost flow assumption generally results in the lowest tax burden.
    1. True
    2. False

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