Accounts receivable appear in the balance sheet:

As either current assets or noncurrent assets, depending on whether the allowance method or the direct write-off method is used to account for uncollectible accounts.

Only if the balance sheet method of estimating uncollectible accounts is used.

As current assets, combined with cash and cash equivalents.

As current assets, immediately after cash and cash equivalents.

Early in the current year, Amazon Co. purchased the Rio Silver Mine at a cost of $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are completed. During the year, 115,000 tons of ore were removed from the mine. At year-end, the book value of the mine is:

	$30,000,000.
	$22,500,000.
	$6,468,750.
	$23,531,250.

A bank reconciliation explains the differences between:

	The balance per bank statement and cash expected to be on hand according to the cash forecast.
	The balance of cash in the bank and the budgeted expenditures for the upcoming accounting period.
	Cash receipts and cash disbursements for the period.
	The balance per bank statement and the cash balance per the accounting records of the depositor.

The application of the matching principle to depreciation of plant and equipment can best be described as:

	Offsetting the revenue of an accounting period with the estimated decline in value of plant and equipment during the accounting period.
	The matching of the book value of an asset with its market value.
	The matching of the depreciation expense reported in the income statement for an accounting period with the accumulated depreciation reported in the balance sheet.
	Offsetting revenue of an accounting period with the portion of the cost of plant and equipment estimated to have been used up during the accounting period.

When prices are increasing, which inventory method will produce the highest cost of goods sold?

Average.

LIFO.

Cost of goods sold will not change.

FIFO

Because of the consistency principle, inventory should never be written down below cost.

	True
	False