Under ASPE's GAAP hierarchy, which of the following sources of information is ranked the highest authoritative source?

• A.

  Pronouncements by the U.S.'s Financial Accounting Standards Board (FASB)

• B.

  Accounting textbooks

• C.

  Industry practice consistent with the conceptual framework.

• D.

  Research studies

Sue Shelby Shoes Inc. uses a periodic inventory system and applies the FIFO cost formula. The following information concerns its single product inventory activity for the first month of operations:

• March 1 Beginning Inventory: 1,000 units @ $15
• March 4 Purchase: 1,500 units @ $17
• March 11 Sale: 2,000 units @ $35
• March 23 Purchase: 1,000 units @ $19
• March 29 Sale: 800 units @ $35

What is the correct balance for inventory at March 31?

• A.

  $10,500

• B.

  $24,500

• C.

  $13,300

• D.

  $19,000

Which of the following presents an example of concessionary selling terms?

• A.

  The credit terms are significantly more lenient than what the company/industry would normally provide.

• B.

  All of the above.

• C.

  The customers is granted extended right of return privileges, without penalty.

• D.

  The selling price is deeply discounted.