Which of the following would not be a component of the year-end inventory balance? Freight charges Inventory inspection costs Inventory preparation costs Inventory related selling costs. Which of the following statements does not correctly describe the allowance for doubtful accounts balance? It is reported on the balance sheet as a component of current assets. It is a contra asset account. C. It is reported on the balance sheet as a current liability. It is created as a result of the adjusting entry to record bad debt expense. Which of the following statements pertaining to bank reconciliations is false? Outstanding checks are deducted from the bank cash balance. Deposits in transit are added to the bank cash balance. Bank service charges are deducted from the bank cash balance. Non-sufficient funds checks identified in the bank statement are deducted from the book cash balance, not the bank cash balance. Which of the following accounts it not a contra-revenue? Sales discounts Credit card discounts Sales returns and allowances Allowance for doubtful accounts Which of the following statements is correct when inventory prices are increasing? LIFO will result in lower net income and a higher inventory valuation than will FIFO. FIFO will result in higher net income and a lower inventory valuation than will FIFO. FIFO will result in lower net income and a lower inventory valuation than will LIFO. FIFO will result in higher net income and a higher inventory valuation than will LIFO. Which of the following correctly describes credit terms of 2/10, n/30? A two percent discount for early payment is available if the invoice is paid before the tenth day of the month following the month the sale. A two percent discount for early payment is available within ten days of the date of sale. A ten percent discount for early payment is available if the invoice is paid within two days of the date of the invoice