A) seller normally pays the transportation costs B) buyer normally pays the transportation costs C) buyer and the seller split the transportation costs D) shipping company bears the transportation cost 6. If goods are sold on terms FOB shipping point, the 7. Which of the following inventory costing methods yields the highest net income during a period of rising inventory costs? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out Which of the following is true of the balance sheet presentation of the Allowance Bad Debts? A) It is reported as a current liability B) It is reported as an operating expense. C) It is reported as a separate, independent line item under current assets. D) It is shown as a contra account related to accounts receivable. 8. 9. The gain or loss on the sale of a plant asset is determined by comparing the mar value of assets received with the of asset sold. A) book value B) residual value C) original cost D) salvage value 10. Which of the following is a characteristic of a current liability? A) It creates a present obligation for future payment of cash or services. B) It cannot be settled with services. C) It is an avoidable obligation. D) It occurs because of a future transaction or event