1. The field of accounting that focuses on providing information for external decision makers is:

A) managerial accounting. B) financial accounting.

C) cost accounting. D) nonmonetary accounting.

2. The matching principle states that:

A) financial statements can be prepared for specific periods.

B) a business's activities can be sliced into small time segments.

C) all expenses should be recorded when they are incurred during the period.

D) companies should record revenue when it has been earned.

3. ________ are the expenses that occur in an entity's major line of business.

A) Selling expenses B) Administrative expenses

C) Operating expenses D) Overhead expenses

4.A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold a total of 150 units for $45 each from March 1 through December 31. What is the amount of ending inventory on December 31, if the company uses the first-in, first-out (FIFO) inventory costing method?

A) $1,500 B) $1,250

C) $1,000 D) $2,250