ACC 304 All Assignments ACC 304 All Assignments | Page 123

a. Verify the accuracy of the perpetual inventory records.
b. Verity the accuracy of the physical inventory.
c. To estimate cost of goods sold.
d. To provide an inventory value of LIFO inventories.
S47. Which of the following is not a basic assumption of the gross
profit method?
a. The beginning inventory plus the purchases equal total goods to be
accounted for.
b. Goods not sold must be on hand.
c. If the sales, reduced to the cost basis, are deducted from the sum of
the opening inventory plus purchases, the result is the amount of
inventory on hand.