1. When performing inventory valuation calculations using major categories instead of specific identification will result in?
   1. The same reported value
   2. Higher value
   3. Lower value
   4. The two cannot be compared
2. Inventory that was purchased for $70,000 has a replacement of $80,000, net realizable value of $90,000 and profit margin of $5,000 will have a designated market value of?
   1. $70,000
   2. $80,000
   3. $90,000
   4. $85,000
3. Inventory that was purchased for $70,000 has a replacement of $80,000, net realizable value of $90,000 and profit margin of $5,000 should be reported at what value?
   1. $70,000
   2. $80,000
   3. $90,000
   4. $85,000
4. Accumulated Depreciation is a X account that maintains a normal X balance
   1. Liability, Debit
   2. Liability, Credit
   3. Asset, Debit
   4. Asset, Credit
5. WorldCom capitalized routine monthly fees that should have been expensed (treating its service provider as a rollover plan, when it did not rollover). The result was to inflate X and reduce Y.
   1. Assets, Expenses
   2. Assets, Revenue
   3. Liabilities, Expenses
   4. Liabilities, Revenue
6. If an exchange lacks commercial substance, and no cash is received, a company should:
   1. Defer Gain
   2. Recognize Loss
   3. Both
   4. Neither
7. All of the following should be capitalized as part of PP&E
   1. Interest Associated with External Financing
   2. Disposal Costs to Remove Previous Structure
   3. Repair of HVAC
   4. Shipment Costs to Factory
8. Newts Magical Beasts, LLC recorded Revenue of $100K and Total Costs of $80K. Assets were $25k and $50k at the begging and ending of the year, respectively. Calculate ROA
   1. 400%
   2. 80%
   3. 40%
   4. 53%
9. Land is depreciated using the following useful life
   1. 3-5years
   2. 5-10 years
   3. None
   4. A or B
10. Depreciation for tax purposes is calculated using the following method:
    1. Activity Method
    2. MACRS
    3. Double Declining
    4. Straight-Life
11. Equipment purchased for $100,000 with a 5 year useful life and $10,000 salvage value is determined to be able to produce 90,000 unites its life time. Assuming the activity method is used, what is the Depreciation Expense in Year 3 if 20,000 units were produced?
    1. 9,000
    2. 18,000
    3. 22,222
    4. 20,000
12. All the following may be capitalized, except
    1. Purchased Brand Recognition
    2. Internally Generated R&D
    3. Legal Costs to Defend Patent
    4. A Franchise Fee for 5 Year Operation

Note: please answer all the questions, thanks.