The LIFO inventory method assumes that the cost of the latest units purchased are

The inventory turnover is calculated as cost of goods sold divided by ending inventory.

True

False

The LIFO inventory method assumes that the cost of the latest units purchased are

the first to be allocated to cost of goods sold.

the first to be allocated to ending inventory.

the last to be allocated to cost of goods sold.

not allocated to cost of goods sold or ending inventory.

In periods of falling prices, FIFO will result in a larger net income than the LIFO method.

True

False

If an account is collected after having been previously written off

both income statement and balance sheet accounts will be affected.

there will be both a debit and a credit to accounts receivable.

the allowance account should be debited.

only the control account needs to be credited.