1 points) Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company. (no answer) True False 2. 1 points) Transactions that affect inventories on hand have an effect on both the balance sheet and the income statement. (no answer) True False 3. 1 points) Cash equivalents are highly liquid investments that can be converted into a specific amount of cash. (no answer) True False 1 points) A contra asset account is subtracted from a related account in the balance sheet. (no answer) True False