1) When should an average amount be used for the numerator or denominator?

a) When the numerator is a balance sheet item or items.

b) When the denominator is a balance sheet item or items.

C) When the numerator is an income statement item or items.

d) When a ratio consists of an income statement item and a balance sheet item.

2) A financial forecast per professional pronouncements presents to the best of the responsible party's knowledge and belief,

a) an assessment of the company's ability to be successful in the future.

b) given one or more hypothetical assumptions, an entity's expected financial position, results of operations, and cash flows.

c) an assessment of the company's ability to be successful in the future under a number of different assumptions.

d) an entity's expected financial position, results of operations, and cash flows.

3) A company that uses the last-in, first-out (LIFO) method of inventory pricing finds at an interim reporting date that there has been a partial liquidation of the base period inventory level. The decline is considered temporary and the partial liquidation is expected to be replaced prior to year end. The amount shown as inventory at the interim reporting date should

a) be shown at the actual level, and cost of sales for the interim reporting period should reflect the historical cost of the liquidated LIFO base.

b) be shown at the actual level, and cost of sales for the interim reporting period should include the expected cost of replacement of the liquidated LIFO base.

c) not give effect to the LIFO liquidation, and cost of sales for the interim reporting period should reflect the historical cost of the liquidated LIFO base.

d) be shown at the actual level, and the decrease in inventory level should not be reflected in the cost of sales for the interim reporting period.

thank you for your help