TCO B In periods of rising prices which of the following inv

(TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure? FIFO LIFO O Average cost method O Cannot be determined based on the information given Question 9 3 pts (TCO A) On a classified balance sheet, prepaid expenses are classified as O current liabilities. O long-term liabilities O current assets ). Prepaid expenses do not belong on the Balance Sheet

Solution

1)Answer : A)FIFO

                  Because the goods that are coming in will be sold first under( First in first out method)

                                 (FIFO) method,

                 In the period of raising the prices the fifo method results highest gross profit margin

           Because the prices are increasing and the gross profit will increase

2) answer : C) current assets

         Prepaid expenses are classified as current asset

   A prepaid expense is an expenditure paid for in one accounting period ,

A prepaid expense is carried on balance sheet of an organisation as a current asset until it is consumed.