1--The goal of not overstating assets or earnings stems from or has its basis in the ________________ principle/concept.

2--Explain the materiality concept.

3--The disclosure principle states that a business should disclose all major accounting methods and procedures in the _________________.

4--Beidas Boutique began the year with 120 blouses that cost $9 each and during the year purchased an additional 240 blouses at $10 each. Sawsan, the owner of the boutique, sold a total of 300 blouses at $15 each. Sawsan maintains a perpetual inventory system and has opted for the FIFO method to cost its inventory. What amount of gross profit should Sawsan report for the year?

5--The Scott Carlson Tire Center (SCTC) began in 2023 with 150 tires that cost $70 each. In March 2023, Scott, CEO of SCTC, sold 50 tires. In June 2023 Scott purchased an additional 175 tires at $76 each. In October 2023 Scott sold 175 tires. Determine Scott's Cost of Goods Sold for the year ended 31 December 2023. Please note that in accordance with GAAP, SCTC uses a perpetual inventory system and opted for the LIFO method to cost its inventory.

6--The Maryam Co. reported sales of 450 units at $35 each; purchases of 400 units at $20 each and a beginning inventory of 100 units at $16 each for the year ended 31 December 2023. Maryam Co.'s income statement for the year ended 31 December 2023 reported cost of goods sold of $8 800. Which costing method does the Maryam Co. use? 7--In an inflationary economy, which inventory costing method minimizes income tax expense? Why?

Answer rating: 100% (QA)

1 The goal of not overstating earnings applied to principleconcept 2 Materiality ... View the full answer