1. The most important accounting problem dealing with merchandise inventory is the application of which of the following conventions or rules? Materiality b. Full disclosure Matching d. Conservatism 2. Goods held on consignment are Kept for sale on the premises of the consignee b. Included as part of one's ending inventory d. Included in the consignee's ending inventory 3. Which costing method assumes that the cost of the first few items acquired should be assigned to the first items sold? a. Specific identification FIFO Average-cost d. LIFO