Question :
1.Walt Co. adopted the dollar-value LIFO inventory method as of 1st January, 2007, when its inventory was measured at $500,000. Walt s entire inventory constitutes a single pool. Using a relevant price index of 1.10, Walt evaluated that its 31st December, 2007 inventory was $577,500 at current-year cost, and $525,000 at base-year cost. What was Walt s dollar-value LIFO inventory at 31st December, 2007?
Answer
A. $525,000
B. $527,500
C. $552,500
D. $577,500
2. Which of the subsequent accounting revenue recognition methods is an example of recognizing revenue as production is finished?
Answer
A. Installment sales method
B. Percentage-of-completion method
C. Completed-contract method
D. Cost-recovery method
3. Which of the subsequent situations is not need in order to use the completed-production technique of revenue recognition?
Answer
A. The product is in salable condition.
B. The earnings process is complete.
C. The market price is stable.
D. The products are similar to other units produced.