5) Aggie Memorabilia, Inc's core business operations is buying and selling autographed Aggie sports memorabilia at a profit. In 2012, Aggie Memorabilia purchased 100 shares of stock in the company Facebook as an investment; they paid $38/share. In 2013, Aggie Memorabilia sold all of the shares of the stock at $40/share. Which of the following best describes how Aggie Memorabilia should account for the sale of stock in 2013? . There should be a decrease in Common Stock because stock was sold There is no effect on Aggie Memorabilia's financials in 2013 based on the transaction that occurred There should be an increase in revenue because Aggie Memorabilia's financial position/assets improved as a result of the transaction There should be an increase in gains because Aggie Memorabilia's financial position/assets improved as a result of the transaction but the sale was not part of the major operations of Aggie Memorabilia 6) During periods of rising prices, which cost flow method of inventory valuation will create higher net income on the Income Statement? FIFO . LIFO Weighted Average They all have the same effect on income 7) Which of the following is not an accurate description of Allowance for Doubtful Accounts? contra-account balance sheet account income statement account an account that adjusts the value of Accounts Receivable balance down to its net realizable value (the amount we actually expect to receive from customers after bad debts)