6. Which of the following statements are true regarding FIFO: Assumes the last goods purchased are the first to be sold. b. Assumes the first goods purchased are the first to be sold. Is a depreciation method d. Is used for a service company Which of the following statements are true regarding LIFO: Assumes the last goods purchased are the first to be sold. Assumes the first goods purchased are the first to be sold c. is a depreciation method d. Is used for a service company In a period of increasing prices, the inventory system that will yield the highest net income is: a. specific identification. b. FIFO. LIFO. d. average-cost. 9. Wal-Mart is a prime example of which type organization: a. Merchandising concem. b. Manufacturing concern. Service organization. Limited partnership. 10. If a sales invoice shows credit terms of 2/10,n/30, the discount period is: a. 10 days. b. 2 days. c. 30 days. d. cannot be determined from the information given. 11. All of the following are characteristics of a corporation except: a. a separate legal entity. b. ownership evidenced by shares of stock. c. produce eight times more revenue than sole proprietorships and partnerships in the United States. d. owners have unlimited liability. 12. The term used to describe the stock representing the primary ownership interest in a corporation is: a. common stock. retrained earnings financing activity d. dividends