If FIFO is used for inventory valuation instead of LIFO when prices are falling:

Question 1 options:

Cost of goods sold will be less under FIFO than LIFO.

Cost of goods sold will be more under FIFO than LIFO.

Inventory value will be less under FIFO than LIFO.

There is no difference in inventory or cost of goods sold.

Question 2 (2 points)

Which of the following is not a reason for a business to prefer to hire an independent contractor rather than an employee?

Question 2 options:

The independent contractor does not participate in company fringe benefits.

The company does not have to pay FICA taxes on the amounts paid to the independent contractor.

The company does not have to supply a workplace or tools to the independent contractor.

The company only has to pay FUTA on the independent contractors wages.

Jacob Corporation decides to use the LIFO method of inventory valuation. Which of the following is true?

Question 3 options:

Jacob can change to FIFO whenever it wishes.

Jacob must use LIFO in its financial statements.

Jacob will have higher taxable income if prices are rising.

Jacob can include FIFO information on the face of the income statements.

Georges flexible spending plan allows him to select fringe benefits equal to 10 percent of his annual salary of $75,000. Which of the following would be taxable if selected?

Question 7 options:

$4,000 health insurance premium

$5,000 of childcare under a dependent care program

$1,500 country club membership

Discount on company products equal to the gross profit percentage.

Matthew, a car dealer in Atlanta, wants to open a restaurant in Miami. He spends $8,000 investigating the location and feasibility of opening the restaurant in 2016, Matthew opens the restaurant in Miami in November and spends an additional $7,000 in start-up costs. In 2016 Matthew can:

Question 8 options:

	Deduct the entire $15,000
	Deduct $8,000 with the remaining $7,000 amortized over 15 years
	Deduct $5,000 with the remaining $10,000 amortized over 15 years
	Only amortize the entire $15,000 over 15 years