Multiple Choice (1 points each) The matching rule relates to credit losses by stating that Bad Expense should be recorded a. in the period of the loss. b. in the same period as allowed for tax purposes. c. in the period of the sale. d. for an exact amount Debts 17. Which inventory method generally best follows the matching principle? a. FIFO b. Whichever method is used for tax purposes c. Average-cost d. LIFO 18. The term used to describe the allocation of the cost of an intangible asset to the periods it benefits is a. apportionment. b. amortization c. depreciation d. depletion 19. Carrying value a. is the same as residual value. b. equals cost minus accumulated depreciation. c. equals cost minus residual value d. is the expired cost of an asset. 20. Outstanding shares of stock are a. authorized shares that have not yet been issued. b. also called treasury shares. c. issued shares that are still in circulation d. shares of stock owned by unknown individuals. 21. The balance of the Retained Earnings account represents a. profits of a company since the date of its beginning less any losses, and dividends to stockholders b. a n excess of revenues over expenses for the most current operating period c. cash set aside for specific future uses. d. cash available for daily operations. 22. Which of the following costs would not be included in the cost of inventory? a. Sales tax b. Freight in c. Invoice price d. Cost of goods held on consignment Which of the following would not be considered cash? a. Money orders from customers b. Postage stamps c. Bank deposits d. Checks from customers