(attempt all)

1.The lower-of-cost-or-net-realizable-value basis of valuing inventories is an example of

		conservatism.
		the historical cost principle.
		the monetary unit assumption.
		the going concern assumption.

2.All of the following statements about the multiple-step income statement are true except:

		It results in a higher net income than a single-step income statement.
		It contains separate sections for other revenues and gains and other expenses and losses.
		It highlights the components of net income.
		It contains amounts for gross profit and income from operations that would not be separately stated on a single-step income statement.

3.Freight costs incurred by the buyer of inventory

		are considered part of the cost of purchasing the inventory
		are considered an operating expense of the buyer
		should rarely occur because most wholesalers offer free shipping
		should rarely occur because most merchandise is sourced locally

4.The allowance method offers the following advantages over the direct-write off method of accounting for uncollectible accounts except

		it avoids overstatement of the accounts receivable on the balance sheet
		it better reflects the cash realizable value of accounts receivable.
		it is consistent with US generally accepted accounting principles
		it results in a greater dollar value of accounts receivable being collected