1. Which of the following statements concerning cost formulas in a periodic inventory system is incorrect?

Select one:

a. The results under weighted average in a periodic system are not the same as in a perpetual system.

b. When using the weighted average cost formula, a new weighted average cost per unit is calculated after each purchase.

c. The cost of goods sold would be lower using FIFO than weighted average in a period of rising prices.

d. The results under FIFO in a periodic system are the same as in a perpetual system.

2. Copycat Copy Shop bought equipment for $ 16,000 on January 1, 2021. Copycat estimated the useful life to be 4 years with no residual value, and the straight-line method of depreciation will be used. On December 31, 2022, prior to recording depreciation for that year, Copycat decides that the business will use the equipment for a total of 5 years. What is the depreciation expense for 2022?

Select one:

a. $ 2,400

b. $ 3,000

c. $ 4,500

d. $ 6,000

3. The Peppa and Duggy partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $ 80,000 for Peppa and $ 40,000 for Duggy. At the beginning of the year, Peppa's capital account had a balance of $ 80,000, while Duggy's capital account had a balance of $ 70,000. Profit for the year was $ 100,000. The balance of Duggy's capital account at the end of the year after closing is

Select one:

a. $ 40,000.

b. $ 120,000.

c. $ 70,000.

d. $ 100,000.

4. Which of the following statements is correct?

Select one:

a. Gains or losses on FVTPL investments are not recorded until the trading investments are sold and the gains or losses are realized.

b. A debt instrument purchased to earn interest will be valued at fair value.

c. A debt instrument which is purchased to earn interest will be valued at amortized cost.

d. All gains and losses on fair value adjustments arising from FVTPL investments are reported in profit or loss.

5. When merchandise inventory is purchased ___ is included in the inventory cost.

Select one:

a. HST

b. PST

c. GST

d. no sales tax

6. The Commodore Computer Shop begins operations on June 1 and uses a periodic inventory system. During June, the company had the following purchases for its Model 10 Fastback Computer System: Purchases____ Date Units Unit Cost June 1 4 $ 2,000 9 9 $ 2,600 On June 30 an inventory count showed there were 8 units on hand. Using the FIFO inventory cost formula, the amount allocated to cost of goods sold for June is

Select one:

a. $ 10,600.

b. $ 16,000.

c. $ 20,800.

d. $ 10,000.