Business Finance Homework Help

Part 1

You must label each answer with the number of question. Each question must have at least three sentence answers. There is no maximum sentence, use as many as you wish to thoroughly answer the question. All answers must be complete sentences using proper grammar and spelling.

1. List the different inventory costing method listed in your book.

2. What is the difference between periodic and perpetual.

3. Inventory costs are rising. Which inventory costing method would have the effect of maximizing net income?

4. Inventory costs are rising. Which inventory costing method would have the effect of minimizing the amount of income tax?

Part 2

Assume you are opening a furniture store.

5. Which type of inventory costing method will you use and would you use periodic or perpetual? Explain your reasons.

6. How often do you plan to do a physical count of inventory on hand? Explain your reason.

7. What do you think will be the biggest accounting issues you will encounter with running your business?