Fin 461 test 3 back of book questions
Which of the following choices best describes reasonable conclusions an analyst might make based on this ROE decomposition? A) Profitability and the liquidity position both improved in FY12. B) The higher average tax rate in FY12 offset the improvement in profitability, leaving ROE unchanged. C) The higher average tax rate in FY12 offset the improvement in efficiency, leaving ROE unchanged
. C
Mustard Seed PLC adheres to IFRS. It recently purchased inventory for €100 million and spent €5 million for storage prior to selling the goods. The amount it charged to inventory expense (€ millions) was closest to: €95. €100. €105.
100
Galambos Corporation had an average receivables collection period of 19 days in 2003. Galambos has stated that it wants to decrease its collection period in 2004 to match the industry average of 15 days. Credit sales in 2003 were $300 million, and analysts expect credit sales to increase to $400 million in 2004. To achieve the company's goal of decreasing the collection period, the change in the average accounts receivable balance from 2003 to 2004 that must occur is closest to: -$420,000. $420,000. $836,000.
836,000
REFER TO PAGES 53-54 Ignoring any tax effect, the 2009 net realizable value reassessment for the black licorice jelly beans will most likely result in: A. an increase in gross profit of CHF 7,775. B. an increase in gross profit of CHF 11,670. C. no impact on cost of sales because under IFRS, write-downs cannot be reversed.
?
REFER TO PAGES 57,58 The best answer to Borghi's Question 2 is: A. Stable. B. Inflationary. C. Deflationary.
?
REFER TO PAGES 57,58 The best answer to Borghi's Question 3 is: A. Activity ratios. B. Solvency ratios. C. Profitability ratios.
?
RERFER TO PAGE 59,60 Note 2 indicates that, "Inventories valued on the LIFO basis totaled ¥94,578 million and ¥50,037 million at December 31, 2008 and 2009, respectively." Based on this, the LIFO reserve should most likely: A. increase. B. decrease. C. remain the same.
?
RERFER TO PAGES 59,60 If ZP had prepared its financial statement in accordance with IFRS, the inventory turnover ratio (using average inventory) for 2009 would be: A. lower. B. higher. C. the same.
?
RERFER TO PAGES 59,60 Inventory levels decreased from 2008 to 2009 for all of the following reasons except: A. LIFO liquidation. B. decreased sales volume. C. fluctuations in foreign currency translation rates.
?
RERFER TO PAGES 59,60 The 2008 inventory value as reported on the 2009 Annual Report if the company had used the FIFO inventory valuation method instead of the LIFO inventory valuation method for a portion of its inventory would be closest to: A. ¥104,698 million. B. ¥506,125 million. C. ¥618,692 million.
?
RERFER TO PAGES 59,60 The Industry and Business Risk excerpt states that, "Increased competition may lead to lower unit sales and excess production capacity and excess inventory. This may result in a further downward price pressure." The downward price pressure could lead to inventory that is valued above current market prices or net realizable value. Any write-downs of inventory are least likely to have a significant effect on the inventory valued using: A. weighted average cost. B. first-in, first-out (FIFO). C. last-in, first-out (LIFO).
?
RERFER TO PAGES 59,60 The MD&A indicated that the prices of raw material, other production materials, and parts increased. Based on the inventory valuation methods described in Note 2, which inventory classification would least accurately reflect current prices? A. Raw materials. B. Finished goods. C. Work in process.
?
RERFER TO PAGES 59,60 What is the least likely reason why ZP may need to change its accounting policies regarding inventory at some point after 2009? A. The US SEC is likely to require companies to use the same inventory valuation method for all inventories. B. The US SEC is likely to prohibit the use of one of the methods ZP currently uses for inventory valuation. C. One of the inventory valuation methods used for US tax purposes may be repealed as an acceptable method.
?
RERFER TO PAGES 59,60 Which observation is most likely a result of looking only at the information reported in Note 9? A. Increased competition has led to lower unit sales. B. There have been significant price increases in supplies. C. Management expects a further downturn in sales during 2010.
?
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMNutmeg, Inc. uses the LIFO method to account for inventory. During years in which inventory unit costs are generally rising and in which the company purchases more inventory than it sells to customers, its reported gross profit margin will most likely be: A. lower than it would be if the company used the FIFO method. B. higher than it would be if the company used the FIFO method. C. about the same as it would be if the company used the FIFO method.
??
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEM Zimt AG uses the FIFO method, and Nutmeg Inc. uses the LIFO method. Compared to the cost of replacing the inventory, during periods of rising prices, the cost of sales reported by: A. Zimt is too low. B. Nutmeg is too low. C. Nutmeg is too high.
A
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMCarey Company adheres to US GAAP, whereas Jonathan Company adheres to IFRS. It is least likely that: A. Carey has reversed an inventory write-down. B. Jonathan has reversed an inventory write-down. C. Jonathan and Carey both use the FIFO inventory accounting method.
A
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMZimt AG wrote down the value of its inventory in 2007 and reversed the write-down in 2008. Compared to the results the company would have reported if the write-down had never occurred, Zimt's reported 2008: A. profit was overstated. B. cash flow from operations was overstated. C. year-end inventory balance was overstated.
A
An analyst is evaluating the solvency and liquidity of Apex Manufacturing and has collected the following data which of the following would be the analyst's most likely conclusion? A). The company is becoming increasingly less solvent, as evidenced by the increase in its debt-to-equity ratio from 0.35 to 0.50 from FY3 to FY5. B). The company is becoming less liquid, as evidenced by the increase in its debt-to-equity ratio from 0.35 to 0.50 from FY3 to FY5. C) The company is becoming increasingly more liquid, as evidenced by the increase in its debt-to-equity radio from 0.35 to 0.50 from FY3 to FY5. 5.
A
Brown Corporation had average days of sales outstanding of 19 days in the most recent fiscal year. Brown wants to improve its credit policies and collection practices and decrease its collection period in the next fiscal year to match the industry average of 15 days. Credit sales in the most recent fiscal year were $300 million, and Brown expects credit sales to increase to $390 million in the next fiscal year. To achieve Brown's goal of decreasing the collection period, the change in the average accounts receivable balance that must occur is closest to: A. +.40 million B. -.40 million C. -1.22 million
A
Carrying inventory at a value above its historical cost would most likely be permitted if: A. the inventory was held by a producer of agricultural products. B. financial statements were prepared using US GAAP. C. the change resulted from a reversal of a previous write-down.
A
Fernando's Pasta purchased inventory and later wrote it down. The current net realizable value is higher than the value when written down. Fernando's inventory balance will most likely be: A. higher if it complies with IFRS. B. higher if it complies with US GAAP. C. the same under US GAAP and IFRS.
A
If inventory unit costs are increasing from period-to-period, a LIFO liquidation is most likely to result in an increase in: A. gross profit. B. LIFO reserve. C. inventory carrying amounts.
A
LIFO reserve is most likely to increase when inventory unit: A. costs are increasing. B. costs are decreasing. C. levels are decreasing.
A
REFER TO PAGE 48. What is the value of ending inventory for the first quarter if the company uses a perpetual LIFO inventory valuation method? A. $14,500 B. $15,000 C. $16,000
A
REFER TO PAGE 48. Which inventory accounting method results in the lowest inventory turnover ratio for the first quarter? A. Periodic LIFO B. Perpetual LIFO C. Perpetual FIFO
A
REFER TO PAGES 53-54Annan's statement regarding the perpetual and periodic inventory systems is most significant when which of the following costing systems is used? A. LIFO. B. FIFO. C. Specific identification.
A
REFER TO PAGES 56 If Karp had used FIFO instead of LIFO, its reported net income for the year ended 31 December 2009 would have been higher by an amount closest to: A. $30 million. B. $38 million. C. $155 million.
A
REFER TO PAGES 56 If Karp had used FIFO instead of LIFO, which of the following ratios computed as of 31 December 2009 would most likely have been lower? A. Cash ratio. B. Current ratio. C. Gross profit margin.
A
REFER TO PAGES 57,58 Compared with its unadjusted debt-to-equity ratio, Mikko's debt-to-equity ratio as of 31 December 2009, after the adjustments suggested by Groff, is: A. lower. B. higher. C. the same.
A
What does the P/E ratio measure? A) The "multiple" that the stock market places on a company's EPS. B) The relationship between dividends and market prices. C) The earnings for one common share of stock.
A
When comparing a US company that uses the last in, first out (LIFO) method of inventory with companies that prepare their financial statements under international financial reporting standards (IFRS), analysts should be aware that according to IFRS, the LIFO method of inventory: A) is never acceptable. B) is always acceptable. C) is acceptable when applied to finished goods inventory only.
A
When screening for potential equity investments based on return on equity, to control risk, an analyst would be most likely to include a criterion that requires: A) positive net income. B) negative net income. C) negative shareholders' equity.
A
Which ratio would a company most likely use to measure its ability to meet short-term obligations A Current ratio B. Payables turnover. C Gross profit margin
A
pg 40 An analyst observes the following data for two companies: Which of the following choices best describes reasonable conclusions that the analyst might make about the two companies' ability to pay their current and long-term obligations? A) Company A's current ratio of 4.0 indicates it is more liquid than Company B, whose current ratio is only 1.2, but Company B is more solvent, as indicated by its lower debt-to-equity ratio. B) Company A's current ratio of 0.25 indicates it is less liquid than Company B, whose current ratio is 0.83, and Company A is also less solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B's debt-to-equity ratio of only 30 percent. C) Company A's current ratio of 4.0 indicates it is more liquid than Company B, whose current ratio is only 1.2, and Company A is also more solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B's debt-to-equity ratio of only 30 percent.
A
A company using the LIFO method reports the following in £: 2015 2014Cost of goods sold 50,800 48,500Ending inventories 10,550 10,000LIFO reserve 4,320 2,600Cost of goods sold for 2015 under the FIFO method is closest to: A. £48,530. B. £49,080. C. £52,520.
B
A creditor most likely would consider a decrease in which of the following ratios to be positive news? A) Interest coverage (times interest earned). B) Debt-to-total assets. C) Return on assets.
B
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMCinnamon Corp. started business in 2007 and uses the weighted average cost method. During 2007, it purchased 45,000 units of inventory at €10 each and sold 40,000 units for €20 each. In 2008, it purchased another 50,000 units at €11 each and sold 45,000 units for €22 each. Its 2008 cost of sales (€ thousands) was closest to: A. €490. B. €491. C. €495.
B
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMCompared to a company that uses the FIFO method, during periods of rising prices a company that uses the LIFO method will most likely appear more: A. liquid. B. efficient. C. profitable.
B
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMCompared to using the FIFO method to account for inventory, during periods of rising prices, a company using the LIFO method is most likely to report higher: A. net income. B. cost of sales. C. income taxes.
B
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMCompared to using the weighted average cost method to account for inventory, during a period in which prices are generally rising, the current ratio of a company using the FIFO method would most likely be: A. lower. B. higher. C. dependent upon the interaction with accounts payable.
B
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMLike many technology companies, TechnoTools operates in an environment of declining prices. Its reported profits will tend to be highest if it accounts for inventory using the: A. FIFO method. B. LIFO method. C. weighted average cost method.
B
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMZimt AG uses the FIFO method, and Nutmeg Inc. uses the LIFO method. Compared to the cost of replacing the inventory, during periods of rising prices the ending inventory balance reported by: A. Zimt is too high. B. Nutmeg is too low. C. Nutmeg is too high.
B
Company A adheres to US GAAP and Company B adheres to IFRS. Which of the following is most likely to be disclosed on the financial statements of both companies? A. Any material income resulting from the liquidation of LIFO inventory B. The amount of inventories recognized as an expense during the period C. The circumstances that led to the reversal of a write down of inventories
B
Compared with a company that uses the FIFO method, during a period of rising unit inventory costs, a company using the LIFO method will most likely appear more: A. liquid. B. efficient. C. profitable.
B
During periods of rising inventory unit costs, a company using the FIFO method rather than the LIFO method will report a lower: A. current ratio. B. inventory turnover. C. gross profit margin.
B
Eric's Used Book Store prepares its financial statements in accordance with IFRS. Inventory was purchased for £1 million and later marked down to £550,000. One of the books, however, was later discovered to be a rare collectible item, and the inventory is now worth an estimated £3 million. The inventory is most likely reported on the balance sheet at: A. £550,000. B. £1,000,000. C. £3,000,000.
B
In a period of declining inventory unit costs and constant or increasing inventory quantities, which inventory method is most likely to result in a higher debt-to-equity ratio? A. LIFO B. FIFO C. Weighted average cost
B
One concern when screening for stocks with low price-to-earnings ratios is that companies with low P/Es may be financially weak. What criterion might an analyst include to avoid inadvertently selecting weak companies? A) Net income less than zero B) Debt-to-total assets ratio below a certain cutoff point C) Current-year sales growth lower than prior-year sales growth
B
REFER TO PAGES 53-54 In Kern's comparative ratio analysis, the 2009 inventory turnover ratio for Century Chocolate is closest to: A. 5.07. B. 5.42. C. 5.55.
B
REFER TO PAGES 53-54 The most accurate statement regarding Annan's reasoning for requiring Kern to select a competitor that reports under IFRS for comparative purposes is that under US GAAP: A. fair values are used to value inventory. B. the LIFO method is permitted to value inventory. C. the specific identification method is permitted to value inventory.
B
REFER TO PAGES 53-54 Using the inventory record for purchased lemon drops shown in Exhibit 4, the cost of sales for 2009 will be closest to: A. CHF 3,550. B. CHF 4,550. C. CHF 4,850.
B
REFER TO PAGES 56 If Karp had used FIFO instead of LIFO, Karp's retained earnings as of 31 December 2009 would have been higher by an amount closest to: A. $117 million. B. $124 million. C. $155 million.
B
REFER TO PAGES 56 If Karp had used FIFO instead of LIFO, its debt to equity ratio computed as of 31 December 2009 would have: A. increased. B. decreased. C. remained unchanged.
B
REFER TO PAGES 56 If Karp had used FIFO instead of LIFO, the amount of cost of goods sold reported by Karp for the year ended 31 December 2009 would have been closest to: A. $2,056 million. B. $2,173 million. C. $2,249 million.
B
REFER TO PAGES 57, 58 Crux's inventory turnover ratio computed as of 31 December 2009, after the adjustments suggested by Groff, is closest to: A. 5.67. B. 5.83. C. 6.13.
B
REFER TO PAGES 57,58 Rolby's net profit margin for the year ended 31 December 2009, after the adjustments suggested by Groff, is closest to: A. 6.01%. B. 6.20%. C. 6.28%.
B
When developing forecasts, analysts should most likely: A) develop possibilities relying exclusively on the results of financial analysis. B) use the results of financial analysis, analysis of other information, and judgment. C) aim to develop extremely precise forecasts using the results of financial analysis
B
Which of the following choices best describes reasonable conclusions an analyst might make about the company's profitability? A) Comparing FY14 with FY10, the company's profitability improved, as indicated by an increase in its debt-to-assets ratio from 0.14 to 0.27. B) Comparing FY14 with FY10, the company's profitability deteriorated, as indicated by a decrease in its net profit margin from 11.0 percent to 5.7 percent. C) Comparing FY14 with FY10, the company's profitability improved, as indicated by the growth in its shareholders' equity to GBP 6,165 million.
B
Which of the following choices best describes reasonable conclusions an analyst might make about the company's solvency? A) Comparing FY14 with FY10, the company's solvency improved, as indicated by an increase in its debt-to-assets ratio from 0.14 to 0.27. B) Comparing FY14 with FY10, the company's solvency deteriorated, as indicated by a decrease in interest coverage from 10.6 to 8.4. C) Comparing FY14 with FY10, the company's solvency improved, as indicated by the growth in its profits to GBP 645 million.
B
Which of the following is an off-balance-sheet financing technique? The use of A) capital leases. B) operating leases. C) the last in, first out inventory method.
B
Which of the following most likely signals that a manufacturing company expects demand for its product to increase? A. Finished goods inventory growth rate higher than the sales growth rate B. Higher unit volumes of work in progress and raw material inventories C. Substantially higher finished goods, with lower raw materials and work-in-process
B
Which of the following would best explain an increase in receivables turnover? A. The company adopted new credit policies last year and began offering credit to customers with weak credit histories. B. Due to problems with an error in its old credit scoring system, the company had accumulated a substantial amount of uncollectable accounts and wrote off a large amount of its receivables C. To match the terms offered by its closets competitor, the company adopted new payment terms now requiring net payment within 30 days rather than 15 days, which had been its previous requirement.
B
A write down of the value of inventory to its net realizable value will have a positive effect on the: A. balance sheet. B. income statement. C. inventory turnover ratio.
C
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMZimt AG started business in 2007 and uses the FIFO method. During 2007, it purchased 45,000 units of inventory at €10 each and sold 40,000 units for €20 each. In 2008, it purchased another 50,000 units at €11 each and sold 45,000 units for €22 each. Its 2008 ending inventory balance (€ thousands) was closest to: A. €105. B. €109. C. €110.
C
ASSUME THE COMPANY USES A PERIODIC INVENTORY SYSTEMZimt AG wrote down the value of its inventory in 2007 and reversed the write-down in 2008. Compared to the ratios that would have been calculated if the write-down had never occurred, Zimt's reported 2007: A. current ratio was too high. B. gross margin was too high. C. inventory turnover was too high.
C
An analyst compiles the following data for a company: FY13 FY14 FY15 ROE 19.8% 20.0% 22.0% Return on total assets 8.1% 8.0% 7.9% Total asset turnover 2.0 2.0 2.1 Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the company's: A) net profit margin and financial leverage have decreased. B) net profit margin and financial leverage have increased. C) net profit margin has decreased but its financial leverage has increased.
C
An analyst gathered the following data for a company ($ millions):31 Dec 2000 31 Dec 2001Gross investment in fixed assets $2.8 $2.8Accumulated depreciation $1.2 $1.6The average age and average depreciable life of the company's fixed assets at the end of 2001 are closest to:Average Age Average Depreciable Life A 1.75 years 7 years B 1.75 years 14 years C 4.00 years 7 years
C
An analyst is evaluating the balance sheet of a US company that uses last in, first out (LIFO) accounting for inventory. The analyst collects the following data:31 Dec 05 31 Dec 06Inventory reported on balance sheet $500,000 $600,000LIFO reserve $ 50,000 $70,000Average tax rate 30% 30%After adjusting the amounts to convert to the first in, first out (FIFO) method, inventory at 31 December 2006 would be closest to: $600,000. $620,000. $670,000.
C
An analyst observes a decrease in a company's inventory turnover. Which of the following would most likely explain this trend? A. The company installed a new inventory management system, allowing more efficient inventory management. B. Due to problems with obsolescent inventory last year, the company wrote off a large amount of its inventory at the beginning of the period. C. The company installed a new inventory management system but experienced some operational difficulties resulting in duplicate orders being placed with suppliers.
C
Assuming no changes in other variables, which of the following would decrease ROA? A) A decrease in the effective tax rate B) .A decrease in interest expense. C) An increase in average assets.
C
Comparison of a company's financial results to other per companies for the same time period is called A technical analysis B. cime series analysis C cross-section analysis
C
Credit analysts are likely to consider which of the following in making a rating recommendation? A) Business risk but not financial risk B) Financial risk but not business risk C) Both business risk and financial risk
C
Exhibit 1 The company's total assets at year-end FY9 were GBP 3,500 million. Which of the following choices best describes reasonable conclusions an analyst might make about the company's efficiency? A) Comparing FY14 with FY10, the company's efficiency improved, as indicated by a total asset turnover ratio of 0.86 compared with 0.64. B) Comparing FY14 with FY10, the company's efficiency deteriorated, as indicated by its current ratio. c) Comparing FY14 with FY10, the company's efficiency deteriorated due to asset growth faster than turnover revenue growth.
C
In a comprehensive financial analysis, financial statements should be: A) used as reported without adjustment. B) adjusted after completing ratio analysis. C) adjusted for differences in accounting standards, such as international financial reporting standards and US generally accepted accounting principles.
C
In order to assess a company's ability to fulfill its long-term obligations, an analysis would most likely examine A. activity ratios B. Liquidity ratios c. Solvency ratios
C
Inventory cost is least likely to include: A) production-related storage costs. B) costs incurred as a result of normal waste of materials. C) transportation costs of shipping inventory to customers.
C
PG 39. Based on this data, what is the analyst least likely to conclude. A Inventory management has contributed to Improved liquidity. B Management of payables has contributed to improved liquidity. C management of receivables has contributed to improved liquidity
C
PG 43 An analyst is most likely to conclude that: A) Company A's ROE is higher than Company B's in FY15, and one explanation consistent with the data is that Company A may have purchased new, more efficient equipment. B) Company A's ROE is higher than Company B's in FY15, and one explanation consistent with the data is that Company A has made a strategic shift to a product mix with higher profit margins. C) The difference between the two companies' ROE in FY15 is very small and Company A's ROE remains similar to Company B's ROE mainly due to Company A increasing its financial leverage.
C
Projecting profit margins into the future on the basis of past results would be most reliable when the company: A) is in the commodities business. B) operates in a single business segment. C)is a large, diversified company operating in mature industries.
C
REFER TO PAGES 53-54 The costs least likely to be included by the CFO as inventory are: A. storage costs for the chocolate liquor. B. excise taxes paid to the government of Brazil for the cacao beans. C. storage costs for chocolate and purchased finished goods awaiting shipment to customers.
C
REFER TO PAGES 56 If Karp had used FIFO instead of LIFO, the amount of inventory reported as of 31 December 2009 would have been closest to: A. $465 million. B. $658 million. C. $775 million.
C
REFER TO PAGES 57,58 The best answer to Borghi's Question 1 is: A. Crux's. B. Rolby's. C. Mikko's.
C
To better evaluate the solvency of a company, an analyst would most likely add to total liabilities? A) the present value of future capital lease payments. B) the total amount of future operating lease payments. C) the present value of future operating lease payments.
C
To compute tangible book value, an analyst would A) add goodwill to stockholders' equity. B) add all intangible assets to stockholders' equity. C) subtract all intangible assets from stockholders' equity.
C
When a database eliminates companies that cease to exist because of a merger or bankruptcy, this can result in: A) look-ahead bias. B) back-testing bias. C) survivorship bias.
C
When comparing financial statements prepared under IFRS with those prepared under US GAAP, analysts may need to make adjustments related to: A) realized losses. B) unrealized gains and losses for trading securities. C) unrealized gains and losses for available-for-sale securities.
C
Which of the following choices best describes reasonable conclusions an analyst might make about the company's liquidity? A) Comparing FY14 with FY10, the company's liquidity improved, as indicated by an increase in its debt-to-assets ratio from 0.14 to 0.27. B) Comparing FY14 with FY10, the company's liquidity deteriorated, as indicated by a decrease in interest coverage from 10.6 to 8.4. C) Comparing FY14 with FY10, the company's liquidity improved, as indicated by an increase in its current ratio from 0.71 to 0.75.
C
Which of the following ratios would be most useful in determining a company's ability to cover its lease and interest payments? A. ROA. B. total asset turnover. c. Fixed charge coverage
C
With regard to the data in Problem 6, what would be the most reasonable explanation of the financial data? A. The decline in the company's equity results from a decline in the market value of this company's common shares. B. The €250 increase in the company's debt from FY3 to FY5 indicates that lenders are viewing the company as increasingly creditworthy. C. The decline in the company's equity indicates that the company may be incurring losses, paying dividends greater than income, and/or repurchasing shares
C
REFER TO PAGES 53-54 If the trend noted in the ICCO report continues and Century Chocolate plans to maintain constant or increasing inventory quantities, the most likely impact on Century Chocolate's financial statements related to its raw materials inventory will be: A. a cost of sales that more closely reflects current replacement values. B. a higher allocation of the total cost of goods available for sale to cost of sales. C. a higher allocation of the total cost of goods available for sale to ending inventory.
c
REFER TO PAGES 53-54 What is the most likely justification for Century Chocolate's choice of inventory valuation method for its purchased finished goods? A. It is the preferred method under IFRS. B. It allocates the same per unit cost to both cost of sales and inventory. C. Ending inventory reflects the cost of goods purchased most recently.
c
