18. In a period of rising prices, the inventory method that results in the highest cash balance is A) FIFO. B) LIFO. C) Average cost. D) None of these choices are correct.

3. Which of the following accounting items does not require the use of the present value concept? A) Business combination B) Prepaid insurance C) Leases D) Long-term notes 4. An amount is deposited for

8. Stech Co. is issuing $7.5 million 12% bonds in a private placement on July 1, 2014. Each $1,000 bond pays interest semi-annually on December 31 and June 30 of each year. The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of the bonds? A) $9,538,574. B) $11,250,000. C) $9,512,998. D) $9,589,572.

10. Which of the following is not considered cash equivalents? A) Treasury bill B) Savings accounts C) Money market funds D) Commercial paper