Which of the following statements best describes how management selects an inventory valuation method?
A) If a company generally sells its oldest inventory first, it must use the FIFO inventory valuation method.
B) If a company generally sells its oldest inventory first, it must use the LIFO inventory valuation method.
C) If a company generally sells its newest inventory first, it must use the FIFO inventory valuation method.
D) If a company sometimes sells its newest inventory and sometimes sells its oldest inventory, then it must use the weighted average inventory valuation method.
E) A company may choose any inventory valuation method even if it is contradictory to the physical flow of inventory.
E
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Which of the following statements is(are) necessarily true (all else the same):
a) The lower the coverage ratio of the company, the wider the corporate bond's credit spread b) The longer the maturity of a Treasury bond, the higher its yield (interest rate) c) The more senior a bond is, the narrower its credit spread
One general liability loss exposure develops as a result of a written or oral agreement to assume the legal liability of another party
A lease that specifies that the building owner is held harmless for liability arising out of use of the building is an example. This liability loss exposure is A) premises and operations liability. B) contractual liability. C) products and completed operations liability. D) contingent liability.