1. Goods in transit which are shipped f.o.b. shipping point should be a. Included in the inventory of the seller b. Included in the inventory of the buyer c. Included in the inventory of the shipping company d. None of the above

2. If the FIFO inventory method was used last period, it should be used for the current and following periods because of a. Relevance b. Neutrality c. Understandability d. Consistency

3. Which type of account is always debited during the closing process? a. Dividends b. Expense c. Revenue d. Retained Earnings

4. What is the normal journal entry when writing-off an account as uncollectible under the allowance method? a. Debit Allowance for Doubtful Accounts, Credit Accounts Receivable b. Debit Allowance for Doubtful Accounts, Credit Bad Debt Expense c. Debit Bad Debt Expense, Credit Allowance for Doubtful Accounts d. Debit Accounts Receivable, Credit Allowance for Doubtful Accounts

5. The floor to be used in applying the lower of cost or market method to inventory is determined as the a. Net realizable value b. Net realizable value less normal profit margin c. Replacement cost d. Selling price less costs of completion and disposal