14) 14) When inventory costs are declining, which of the following inventory costing methods will result in the highest cost of goods sold? A) first-in, first-out B) last-in, first-out C) weighted average D) specific identification 20) 20) Which of the following statements regarding a periodic inventory system is incorrect? A) A periodic inventory system is simpler than a perpetual inventory system. B) A periodic inventory system works well for small businesses in which inventory costs can be controlled by visual inspection C) The only way to determine the ending merchandise inventory and cost of goods sold in a periodic inventory system is to take a physical inventory. D) The various inventory costing methods are not used in a periodic inventory system. 26) A petty cash fund was established with a $400 balance. It currently has cash of S41 and petty cash tickets totaling $359. Which of the following would be included in the entry to replenish the fund? A) a credit to Petty Cash for $359 B) a debit to Petty Cash for $41 C) a credit to Cash for $41 D) a credit to Cash for $359 27) D 27) Regarding the gross method of handling credit and debit card transactions, which of the following statements is correct? A) The total sale amount is deposited on the date of the actual sale. B) The processing fees for all transactions processed for the month are deducted from the company's bank account, often on the last day of the month. C) On the date of sale, the Sales Revenue account is credited for the amount of sale less the processing fee. DThe journal entry on the date of sale is identical to a journal entry made for a sale on account. 29) 29) Martin Inc. has a cash ratio of 0.3. This implies that the company A) has an unnecessarily large amount of cash supply b) is not sending a strong message to investors and creditors that it has the ability to repay its short-term debt C) is not in a position to meet its long-term obligations D) has no liquidity issues