A16. The full disclosure principle requires a. Entities disclose all circumstances and events that would make a difference to financial statement users b. Entities disclose all crimes and torts committed by employees c. All union contracts for labor and pay of union officers be fully disclosed in the notes d. Financial statement users disclose use of the financial statements and purposes thereof A28. According to the matching principle the cost of inventory becomes an expense a. When the inventory is shipped b. When the inventory is sold c. When the inventory is paid for d. When the inventory is converted to cash A31. In periods of rising prices the inventory cost flow method which results in the inventory value on the balance sheet closest to current cost is the a. LIFO method b. FIFO method c. Tax accounting method d. Specific Identification e. Average cost method A32. The month-end bank statement of Der Torossian Incorporated shows a balance of $36,500, deposits in transit are $6,500, outstanding checks are $12,000. There also shows a credit memo of $1,000 for interest income collected on a note receivable. The adjusted balance per bank at month end is a. $30,000 b. $31,000 c. $32,000 d. $36,500 e. $43,000 f. $43,500