The credit terms, 2/10, n/30, indicate that a:

Select one:

a. 10% discount can be deducted from the invoice if paid within 2 days following the date of sale.

b. 2% discount can be deducted from the invoice if paid within 30 days following the date of sale.

c. 2% discount can be deducted from the invoice if paid within 10 days following the date of sale.

d. 2% of the invoice is due in 10 days, the remainder is due in 30 days.

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What is meant by "market" in lower-of-cost-or-market calculations?

Select one:

a. The amount of gross margin earned by selling merchandise.

b. The amount the goods were sold for during the period.

c. The amount that would have to be paid to replace the merchandise.

d. The amount originally paid for the merchandise.

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A Clothing Store sold a piece of land for $38,000. The land had an original cost of $32,500. How would this be recorded on the Income Statement?

Select one:

a. As an increase in Gross Profit by $5,500.

b. As an increase in Operating Income by $5,500.

c. As a decrease in Gross Profit by $5,500.

d. As an increase in Non-Operating Income by $5,500.

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A company reported the following inventory transactions during the year:

1/1/2015	Beginning Inventory	10 units	@ $20
2/10/2015	Purchase	20 units	@ $18
2/22/2015	Purchase	16 units	@ $14
3/7/2015	Sale	18 units	@ $30

What is the cost of goods sold using the FIFO cost flow method?

Select one:

a. $344

b. $260

c. $307

d. $540

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Using the below information, which inventory cost flow method would result in the lowest net income for the year?

1/1/2015	Beginning Inventory	10 units	@ $20
2/10/2015	Purchase	20 units	@ $18
2/22/2015	Purchase	16 units	@ $14
3/7/2015	Sale	18 units	@ $30

Select one:

a. FIFO

b. LIFO

c. Weighted Average

d. Net Income would be the same