ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 60

d. Total sales for the period.
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.
c. Retailer keeps a record of the total costs and retail value of goods
available for sale.
d. Retailer keeps a record of sales for the period.
60. What method yields results that are essentially the same as
those of the conventional retail method?
a. FIFO.
b. Lower-of-average-cost-or-market.