Author Question: During periods of decreasing costs, the use of the LIFO method of costing inventory will result in a ... (Read 122 times)

nramada · **on:** Jul 5, 2018

During periods of decreasing costs, the use of the LIFO method of costing inventory will result in a lower amountof net income than would result from the use of the FIFO method.
a. True
b. False

Indicate whether the statement is true or false

Question 2

Clean Sweep agreed to clean an office building on a weekly basis for 1,000 per week. The contract began on August 15, and Clean Sweep cleaned the building twice during August. Clean Sweep received 1,000 cash in August.

During August, Clean Sweep spent 400 on wages for the workers who cleaned the building, 90 for the cleaning supplies used, and 4,000 to purchase specialized cleaning equipment. How much revenue should Clean Sweep recognize in August using accrual accounting?
What will be an ideal response?