1. Non-controlling interest on the income statement represents: a. share of income that belongs to the minority shareholders of the parent company. b. share of income that belongs to the minority shareholders of the subsidiary company. c. share of income that belongs to the controlling shareholders of the subsidiary company. d. None of the above. 2. What is meant by comparability when discussing financial accounting information? a. Information presented by a company that applies the same accounting treatment to similar events, from period to period. b. Information is timely. c. Information that is classified, characterized, and presented clearly and concisely. d. Information is verifiable. 3. When different auditors count the same inventory of a company and arrive at the same amount, this is best described as the: a. predictive value. b. completeness. c. verifiability d. neutrality. 4. Which of the following would not require retrospective adjustments to the financial statements? a. Correction of error on inventory in prior year. b. Change of depreciation method from Straight-line method last year to declining method this year C. Change of the bad debt estimate from 2% of net sales last year to 5% this year. d. Change of inventory valuation from FIFO method last year to weight-average method this year. 5. Pet Company recently purchased the following items for resale, paying a total of $48,000. Item No. of Items Purchased Resale Price Per Unit A 2,000 $5.00 B 2,000 $8.00 3,000 $8.00 The gross profit for 100 units of inventory C sold is: a. $358.00 b. $200.00 c. $40.00 d. $32.00