Question

1- Assuming a period of inflation, which inventory costing method will result in the highest profits?

1. Specific identification

2. LIFO

3. Average costs

4. FIFO

2- An auditor's report that signifies that the financials of a company are fairly presented in accordance with GAAP accounting is called a _____________ report.

1. qualified

2. unqualified

3. adverse

4. disclaimer of opinion

3- Changes to prepaid expenses would be found on the:

1. statement of shareholders' equity.

2. cash flow statement.

3. balance sheet.

4. income statement.

5. 4-

4- Non-GAAP accounting might be an appropriate metric to use if:

1. Management is sure that their stock price is too low.

2. Non-GAAP accounting should never be used.

3. If it is a better representation of the firm's reoccurring earnings power.

4. If there are significant one-time charges reported on the balance sheet

Answer 1