0. An example of an inventory accounting nolicy that should be disclosed in a Summary Significant Accounting Policies is the A) major backlogs of inventory orders. B) method used for pricing inventory. C) separation of inventory into raw materials, work-in-process, and finished goods D) amount of income resulting from the involuntary liquidation of LIFO. 7. The full disclosure principle, as adopted by the accounting profession, is best desco by which of the following? A) Disclosure of any financial facts significant enough to influence the judgment of an informed reader. B) All information related to an entity's business and operating objectives is required to be disclosed in the financial statements. C) Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements. D) Enough information should be disclosed in the financial statements so a person wishing to invest in the stock of the company can make a profitable decision 8. Which of the following best describes current practice in accounting for leases? A) Leases similar to installment purchases are capitalized. B) All long-term leases are capitalized. C) All leases are capitalized. D) Leases are not capitalized. 9. A company that uses the last-in, first-out (LIFO) method of inventory pricing finds at an interim reporting date that there has been a partial liquidation of the base period inventory layer. The decline is considered temporary and the partial liquidation is expected to be recovered prior to year end. The amount shown as inventory at the interim reporting date should A) be shown at the actual level, and cost of sales for the interim reporting period should reflect the historical cost of the liquidated LIFO base. B) be shown at the actual level, and the decrease in inventory level should not be reflected in the cost of sales for the interim reporting period. C) be shown at the actual level, and cost of sales for the interim reporting period should include the expected cost of replacement of the liquidated LIFO base. D) not give effect to the LIFO liquidation, and cost of sales for the interim reporting period should reflect the historical cost of the liquidated LIFO base