Which of the following inventory cost flow assumptions producesthe same ending inventory values under both the periodic andperpetual systems?

		FIFO
		LIFO
		average
		dollar-value LIFO

QUESTION 2

The Purchases Discounts Taken account may appear in theaccounting records if which one of the following methods is used toaccount for purchase discounts?

		net price method
		gross price method
		allowance method
		sales price method

QUESTION 3

Which one of the following statements is true?

		Income manipulation is difficult under LIFO.
		Accounting principles do not require that the inventory costflow approximate the physical flow of goods.
		Companies may use LIFO for tax purposes and FIFO in thefinancial statements.
		In periods of declining prices, LIFO will result in the paymentof lower income taxes.

QUESTION 4

Which one of the following statements is true?

		FOB destination means the buyer has legal title to the goodswhile they are in transit.
		FOB shipping point means the seller has legal title to the goodswhile they are in transit.
		FOB destination means the seller has legal title to the goodsuntil they reach the buyer's place of business.
		FOB shipping point means the buyer acquires legal title to thegoods when they reach the buyer's place of business.

QUESTION 5

A retail firm would normally use an inventory account titled

		finished goods inventory
		merchandise inventory
		goods in process inventory
		raw materials inventory