1) FIFO assumes that the earliest goods purchased are the first to be sold a) true b) false 2) FIFO commonly used to estimate the value of inventory on hand at the begining of an accounting period a) true b) false 3) the earliest goods purchased are the first ones removed from the inventory account a) true b) false 4) the gross margin does not necessarily reflect a proper matching of revenues and costs a) true b) false 5) Cost of goods sold (COGS) = Beginning inventory - Purchases +Ending inventory a) true b) false

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