16. Which of the following accounts is most likely to appear on the balance sheet as a current liability? OA. Mortgage Payable . Unearned Rent OC. Bonds Payable OD. Capital Lease 1. The lower-of-cost-or-market method of accounting for inventories follows the convention of OA. materiality B. full disclosure. OC. conservatism. D. cost-benefit. 3. Which of the following is not considered in computing net cost of purchases? O A. Purchases returns and allowances B. Purchases OC. Freight paid on purchased goods OD. Freight-out expenses 5. Use this inventory information for the month of March to answer the following questions. Mar. 1 Beginning inventory 7 Purchase 18 Sale 22 Purchase 40 units @ $40 50 units @ $50 55 units 10 units @ $60 Assuming that a perpetual inventory system is used, what is cost of goods sold on a LIFO basis? O A. $2,700 OB. $2,720 OC. $2.350 OD. $2.850