1. Which of the following increases the cost of a company's net purchases of inventory? A. Sales Discounts B. Purchase Discounts C. Bad Debt Expense D. Freight-Out E. Freight-In 2. All else being equal, as the cost of beginning inventory decreases, the cost of goods sold will: A. Increase B. Decrease C. Stay the same 3. All else being equal, as the cost of ending inventory decreases, the cost of goods sold will: A. Increase B. Decrease C. Stay the same 4. All else being equal, as the cost of net purchases decreases, the cost of goods sold will: A. Increase B. Decrease C. Stay the same 5. The amount often described as the cost of goods available for sale is calculated as follows: A. Beginning Inventory - Net Purchases B. Beginning Inventory + Net Purchases - Ending Inventory C. Beginning Inventory + Net Purchases D. Net Purchases - Ending Inventory E. Ending Inventory + Net Purchases 6. Which of the following statements is true for companies that use the LIFO method for income tax purposes in the United States? A. They must use the FIFO method for financial statement purposes. B. They must use the LIFO method for financial statement purposes. C. They are permitted to use any inventory costing method for financial statement purposes. D. They must use the average cost method for financial statement purposes. 7. Which of the following statements is true for companies that use the FIFO method for income tax purposes in the United States? A. They must use the FIFO method for financial statement purposes. B. They must use the LIFO method for financial statement purposes. C. They are permitted to use any inventory costing method for financial statement purposes. D. They must use the average cost method for financial statement purposes