QUESTION 45 Lower of cost or market: O A. Is applied to each individual item, major categories of items, or the whole inventory. O B . Is only applicable to companies using FIFO. O C. Records only an increase in inventory value. O D. Is only applicable to companies using LIFO. O E. Reports all inventory items at full cost. QUESTION 46 Which of the following is not true about the Allowance for Doubtful Accounts? O A. It is a contra asset account. O B. It is used instead of reducing accounts receivable directly. O C. It is debited when uncollectible accounts are written off. O D. It is a liability account. O E. It is credited when bad debts expense is estimated and recorded. QUESTION 47 The useful life of a plant asset is: O A. The length of time it is productively used in a company's operations. O B. Never related to its physical life. O C. Its productive life, but not to exceed one year. O D. Determined by the FASB. O E. Determined by law. QUESTION 48 Depletion is: O A. The process of allocating the cost of natural resources to the period when it is consumed. O B. Calculated using the double-declining balance method. O C. Also called amortization. O D. An increase in the value of a natural resource when incurred. O E. The process of allocating the cost of intangibles to periods when they are used