1). When using the moving-average cost formula with a perpetual system,

A). a weighted-average cost is calculated at year-end.

B). a new unit cost is calculated each time a sale is made.

C). a new unit cost is calculated each time a purchase is made.

D). a new unit cost is calculated both when a sale is made and when a purchase is made.

2). Which of the following does NOT correctly describe the implications of an executory contract on the accounting entries and/or disclosures to be made by the purchaser and/or seller?

A) Assets and liabilities are usually recorded at inception of the contract.

B). Assets and liabilities are usually not recorded at inception of the contract.

C). Contract details should be disclosed if the amounts are abnormal in relation to the entity's normal business operations.

D) Assets and liabilities are recognized as performance has occurred.