1)Which of the following would not be used to calculate income from operations?

	a)Research and development expense.
	b)Gross profit.
	c)Interest income.
	d)Selling and administrative expenses.

2)An overstatement of the 2013 ending inventory results in an overstatement of stockholders' equity as of the end of 2013.

	True
	False

3)When determining the unit cost of an inventory item, which of the following should not be included?

	a)Interest on loans obtained to purchase the item
	b)Storage fees prior to sale
	c)Freight costs on the item when purchased
	d)Commissions paid when purchased

4)Inventory items purchased on credit that are correctly debited to 2013 purchases, but improperly included in the 2013 ending inventory cause:

	a)both 2013 assets and pre-tax income to be overstated
	b)both 2013 pre-tax income and 2013 assets to be understated
	c)both accounts payable for 2013 and 2013 pre-tax income to be overstated
	d)2013 assets to be understated and 2013 pre-tax income to be overstated

5)The book (or carrying) value of a capital asset declines more rapidly when an accelerated depreciation method is used than when the straight-line amortization method is used.

	True
	False