1. Which inventory cost flow assumption results in the highest tax expense in a period of inflation?

1. Average cost
2. Specific identification
3. Retail method
4. Moving weighted average
5. FIFO

2. Classified multiple-step income statements

1. Are required by Canada Revenue Agency
2. Are generally used for internal reporting
3. Do not report gross profit
4. Are required for the perpetual system
5. List cost of goods sold as an operating expense

3. Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

True False

4. The direct write-off method does not use an allowance for doubtful accounts account.

True or False

5. The Accounting Standards Board (AcSB), is the body that developed accounting standards for private enterprises (ASPE).

True or False