1. All things being equal, a company would prefer:

		A. a higher accounts receivable turnover ratio.
		B. a lower profit margin.
		C. a lower accounts receivable turnover ratio.
		D. a lower inventory turnover ratio.

2. Which of these statements about credit card sales is incorrect?

		A. The retailer generally considers the sales as cash sales.
		B. The retailer gets paid even if use of the credit card was fraudulent; "chargebacks" do not occur.
		C.The retailer must pay a card issuer a fee for processing the transactions.
		D. The retailer generally receives payment more quickly than if it had to process its own receivables.

3. Reporting the inventory at the lower-of-cost-or-net-realizable-value

		A. is required when the value of the inventory is lower than its cost.
		B. is a way to increase net income in the absence of sales.
		C. generally occurs when the value of the inventory has increased.
		D. is completely optional after reporting the cost of the inventory using one of the inventory costing methods such as FIFO or average cost.

4. Which of the following should not be included in the physical inventory of a company?

		A. Goods the company owns, but has placed on consignment with another company.
		B. Goods shipped from the company's supplier that were shipped F.O.B. shipping point on December 31, and are now in transit.
		C. Goods shipped to a customer F.O.B. destination that are in transit on December 31.
		D.All choices should be included