1. Lower-of-cost-or-market (for tax purposes) may be used with all of the following merchandise costing methods EXCEPT

a. the weighted-average method.

b. the last-in, first-out method.

c. the first-in, first-out method.

d. the specific identification method.

2. Sales Discounts is an example of a(n) (contra-revenue??) account.

3. Under the perpetual inventory method, when inventory is purchased, Merchandise Inventory

a. is credited and Cash or Accounts Payable is debited.

b. and Accounts Payable are credited and Cash is debited.

c. and Accounts Payable are debited and Cash is credited.

d. is debited and Cash or Accounts Payable is credited.

4. Under the .................... , the write-off of an account as uncollectible does not affect either the income statement or the balance sheet.

5. Costs of goods sold may include all of the following EXCEPT

a. insurance.

b. shipping costs.

c. management salaries.

d. manufacturing costs.

6.The ability of a business to meet its current obligations may be determined by the

a. inventory turnover.

b. current ratio.

c. accounts receivable turnover.

d. working ratio.