5. If prices are rising, which inventory cost flow method will produce the lowest amount of cost of goods sold? A. Last-In, First-Out (LIFO) B. Weighted Average C. First-In, First-Out (FIFO) D) All methods will result in the same amount of cost of goods sold 6. The percent of receivables method to estimate uncollectible accounts expense is also known as the: A. Income Statement Approach B. Credit Sales Approach C) Direct Write-Off Approach D. Balance Sheet Approach 7. The practice of reporting the net realizable value of receivables in the financial statements is commonly called the: A. Allowance method of accounting for uncollectible accounts (B) Direct write-off method of accounting for uncollectible accounts C. Accrual method of accounting for uncollectible accounts D. Cash flow method of accounting for uncollectible accounts 8. Which of the following businesses is most likely to use the specific identification inventory cost flow method? A. Hardware store B. Roofing company C. Grocery store D. Car dealership 9. Vargas Company uses the perpetual inventory method. On March 5, Vargas purchased 400 units of inventory that cost $15.00/ unit. On March 15th. Vargas purchised an additional 800 units that cost $18.00 unit. During March, Vargas sold 500 units of inventory for $27.00. If Vargas uses the FIFO method of inventory costing, the amount of cost of goods sold appearing on the income statement for Vargas would be: A. $4,500 B. $6,000 (C) $7,800 D. $5,700 10. What steps might an account take in determining a good estimate for a company's uncollectible accounts expense? A. Consider new circumstances that are anticipated to be experienced in the future B. Compute a percentage of the net credit sales C. Consult with trade association and business associates D. All of these answer choices are correct 11. Palouse Company uses the perpetual inventory method. On October 5th, Palouse purchased 2,100 units of inventory that cost $22.00 unit. On October 15th, Palouse purchased an additional 2,500 units that cost $23.00/ unit. During October, Palouse sold 2,200 units of inventory for $26,00. If Palouse uses the FIFO method of inventory costing, the amount of ending inventory appearing on the income statement for Palouse would be: A. $48,500 B. $55,200 C. $50,600 D. $53,100 12. Which of the following would not be classified as a tangible long-term asset? A. Delivery truck B. Copyright C. Coal mine D. Land 1. Which of the following is not one of the elements that typically is present when fraud occurs (according to the fraud triangle): A. Collusion with others B. Existence of an outside pressure C. Capacity to rationalize D. An opportunity is present 2. Policies and procedures designed to reduce the opportunities for fraud are often called: A. Asset source transactions B. Internal controls C. Financial systems D. Accounting standards 3. What documentation issued by a bank increases a company's checking account balance at the bank? A. Debitmemo B. Credit memo C. Bank reconciliation D. Certified check 4. On January 1st of Year 2, Kincaid Company's balance for Accounts Receivable was $66,800 and the Allowance for Doubtful Accounts was $2,000. During Year 2, Kincaid reported $169,000 of credit sales and wrote of $1,450 of receivables as uncollectible. Cash collections on receivables amounted to $191,100. Kincaid estimates one percent (1%) of net credit sales to be uncollectible. Kincaid's entry to recognize uncollectible accounts expense for Year 2 will: A. decrease total assets and decrease net income B. decrease total assets and increase retained eamings C. increase total assets and increase retained earnings D. increase total assets and decrease net income