Author Question: A bank reconciliation should be prepared periodically because a. the company's records and the ... (Read 149 times)

beccaep · **on:** Jul 5, 2018

A bank reconciliation should be prepared periodically because
a. the company's records and the bank's records are in agreement
b. the bank has not recorded all of its transactions
c. any differences between the company's records and the bank's records should be determined, and any errorsmade by either party should be discovered and corrected
d. the bank must make sure that its records are correct

Question 2

Philipsburg Corporation sells mugs to fine retailers across the world. Data from its periodic inventory system is presented in the table below. Inventory is sold for 170 per unit. Operating expenses excluding cost of goods sold totaled 40,000.

Date Number of Units Unit Cost Total Cost
January 1 Beginning inventory 300 100 30,000
January 13 Purchase 400 110 44,000
January 22 Purchase 500 120 60,000

Which cost flow method would result in the LOWEST taxable income for the period?
A) FIFO
B) LIFO
C) Weighted average method
D) Only the LIFO cost flow method can be used for tax returns.