ACC 304 All Assignments ACC 304 All Assignments | Page 130

S58. Which of the following is not a reason the retail inventory
method is used widely?
a. As a control measure in determining inventory shortages
b. For insurance information
c. To permit the computation of net income without a physical count
of inventory
d. To defer income tax liability
59. What condition is not necessary in order to use the retail
method to provide inventory results?
a. Retailer keeps a record of the total costs of products sold for the
period.
b. Retailer keeps a record of the total costs and retail value of goods
purchased.