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If ending inventory is overstated, the cost of merchandise sold will be understated
False
True
False
False
True
True
False
False
Most businesses have a merchandise inventory turnover ratio close to 12, since they offer terms on n/30 to their customers
False
True
False
False
True
True
False
False
To use the retail method of estamating inventory, the cost of purchase, sales and beginning merchandise inventory must be known. The retail price of items sold must also be known.
False
True
False
False
True
True
False
False
The cost of merchandise avaliable for sale consists of beginning merchandise inventory and net purchases
False
True
False
False
True
True
False
False
To prepare monthly interim financial statements, a business should take the inventory monthly
False
True
False
False
True
True
False
False
If ending inventory is overstated, net income will be overstated
False
True
False
False
True
True
False
False
A low merchandise inventory turnover ratio usually indicates a high return on investment
False
True
False
False
True
True
False
False
Each year, the business uses the inventiry costing method that results in the most favorable net income
False
True
False
False
True
True
False
False
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