11. In an inflationary period, which cost flow method, LIFO or FIFO, results in the larger dollar amount of assets on the balance sheet? 12. In an inflationary period, which inventory...

11. In an inflationary period, which cost flow method, LIFO or FIFO, results in the larger dollar amount of assets on the balance sheet?

12. In an inflationary period, which inventory cost flow method (FIFO or LIFO) is more desirable from a tax standpoint? Why?

13. In relation to inventory, differentiate between the flow of cost and the physical flow of goods.

14. In a world with inflation, but no income tax, how does the choice between LIFO and FIFO affect a company's cash flows. Would the presence of an income tax system cause a difference in the amount of cash outflow when using FIFO versus LIFO?

15. If Beamon Company is using FIFO, how would the accountant compute cost of goods sold when recording a sale under the perpetual inventory system?