Day 7 Flashcards
1
Q
At what rate is a patent amortized?
A
The shorter of legal or useful life
MCQ-07555
2
Q
What is true pertaining to dollar Value LIFO?
A
- It includes an estimate of the change in inventory price levels
- The computation of the price Index includes a base Year ending inventory cost in the denominator
- To derive the dollar Value LIFO inventory layer added, the price index is multiplied by the LIFO inventory layer base Year cost
MCQ-01672
3
Q
The replacement cost of an inventory item is below the net realizable value and above the net realizable value less normal profit margin.
The inventory items original cost is above net realizable value.
Under lower cost or market method, the inventory item should be valued at:
A
Replacement cost
MCQ-06940
