1) In the period of rising prices, the inventory method which tends to give the highest reported net income is a) FIFO b) LIFO c) Weighted average d) Moving average 2) When computing the amount of interest to be capitalized, the concept of "avoidable interest" refers to: a) The total interest cost actually incurred b) Cost of capital change for Stockholder's equity c) The portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made. d) That portion of average accumulated expenditure on which no interest cost was incurred. 3) Which of the following is not a capital expenditure? a. Repairs that maintain an asset in operating condition b. An addition c. A betterment d. replacement 4) Where should goods in transit that were recently purchased FOB destination be included on the statement of financial position? a) Accounts payable b) Inventory c) New Plant d) Not on the Balance Sheet 5) Which of these is not a major characteristic of a plant asset? a. Possesses physical substance b. Acquired for resale c. Acquired for use d. All of above