Questions 1. Signify "True" or "False" as applicable for each of the following items as they pertain to assigning costs to inventory units. 1.1 FIFO better reflects current replacement cost on the balance sheet versus LIFO. 1.2 LIFO better reflects current replacement cost on the income statement versus FIFO. 1.3 Businesses must choose the method that most closely matches the physical flow of them a) True b) False a) True b) False inventory. a) True b) False 1.4 If unit costs do not change over time, all methods will yield the same results. .5 When costs are rising, LIFO yields a higher net income than FIFO. 1.6 When costs are falling, FIFO yields a higher net income than LIFO. a) True b) False a) True b) False a) True 1.7 The number of units available for sale - the number of units sold + the number of units b) False still on hand a)True b) False 1.8 Under GAAP, methods can be changed from year to year in order to maximize reported profits. a) True b) False 1.9 Under FIFO, the current month beginning inventory is always assumed to be sold first no matter what the current month sale date is. a) True b) False 1.10 Under LIFO, the last purchase that occurs during the current month is always assumed to be sold first no matter what the current month sale date is. a) True b) False