contra account? 4 Which of the following would not be classifiod as a A) Accumulated Depreciation B) Sales Discounts C) Sales Reterms and Allowances D) Sales Revenue 5. A bank statement A) s a credit reference letter written by the depostri bark B) is a bill from the bank for services rendered C) shoms the activities that increased or decreased the depositor's account balance. D) lets a depositor know the finapcial position of the bank as of a crin date 6. Ia periods of rising prices,which is an advantage of using the LIFO inventony costing method? A) Net income will be the highest and thus reflect the prosperity of the company B) Ending inventory will include latest (most rocent) costs and thus be more realistic. C) Phastom profits are reported D) Couot of goods sold will include latest (most recent) oosts and thus will be more 7. Given equal circumstances and generally rising costs, which inveatory method will increase the tax expense the most? A) Average cost B) Income tax expense for the period will be the same under all assumptions C) LIFO D) FIFO 8 Quiet Phones Commpany has the following inventary data: July1 Beginning inventory 30 units at $19 105 units at $20 15 units at $22 s 570 2,100 330 $3,000 7 Purchases 22 Purchases A physical count of merchandise inventory on Jely 30 reveals thst there ar 48 units cn hand. July is A)$2,010. B) $2,070. C) $990. Using the LIFO inventory method, the amount allocated to cost of goods sold for D) $930 Version1 Page