Question Details

An error that overstates the ending inventory will also cause net income 


True or false 
	1.	In a period of rising prices, the statement of financial position will report a higher inventory amount if FIFO, rather than average-costing, is the cost flow assumption used.
2.	The accounting concept of prudence dictates that the accounting principle used should
be the one least likely to overstate assets and income.

	3.	Accountants believe that the write down from cost to net realizable value should not be made in the period in which the price decline occurs.
	4.	An error that overstates the ending inventory will also cause net income for the period to be overstated.
	5.	If an error understates the beginning inventory, net income will also be understated.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help