The three inventory costing methods will normally each yield ...

[burton19126]

The three inventory costing methods will normally each yield different amounts of net income.
 a. True
  b. False
 
   Indicate whether the statement is true or false

Question 2

Both Company A and Company B use accrual accounting. Both have 80,000 in sales revenues and 50,000 in expenses for their first month of business. Company A allows cash sales only.
 
  Company B sells to its customers on account and as of the end of the month its customers owe 30,000. Show how Company A's and B's four financial statements compare by putting an X under either the Same or Different column for each of the statements.
 
   Same Different
  1. Income Statement
  2. Statement of Changes in Shareholders' Equity
  3. Statement of Cash Flows
  4. Balance Sheet

[rnehls]

Answer to Question 1

True

Answer to Question 2

Same Different
1. Income Statement X
2. Statement of Changes in Shareholders' Equity X
3. Statement of Cash Flows X
4. Balance Sheet X