Question 1.1.The lower-of-cost-or-market rule demonstrates ________ in regards to reporting inventory. (Points : 20)

materiality conservatism consistency the cost principle

Question 2.2.The ________ method of inventory costing would be a reasonable method of costing inventory for a luxury car dealership. (Points : 20)

LIFO FIFO specific-unit-cost average-cost

Question 3.3.The principle that discourages businesses from switching accounting methods from one period to the next is the ________. (Points : 20)

full disclosure principle consistency principle materiality concept conservatism concept

Question 4.4.Terry Corp uses a perpetual inventory accounting system. Terry Corp has a beginning inventory of 12 units at $20 each on January 1, 20X1. The following inventory transactions occurred during the month of June: June 2 - purchased 20 units at $22 each June 5^th sold 12 units June 12^th purchased 15 units at $25 each June 25^ft sold 25 units June 30^th purchased 5 units at $26.50 each If Terry Corp uses the LIFO inventory costing method, Terry Corp will record cost of goods sold on June 25 of ________. (Points : 20)

$565.00 $591.00 $617.50 $595.00

Question 5.5.The cost of goods sold for the period could be estimated by ________. (Points : 20)

dividing sales revenue by one minus the gross profit percentage dividing sales revenue by the gross profit percentage multiplying sales revenue by one minus the gross profit percentage multiplying sales revenue by the gross profit percentage