15.

12.

8.

6.

3.

1.

To apply the units-of-activity method, all of the following information is needed except the original cost O estimated residual value. O estimated useful life. O estimated usage. The only long-term asset that cannot be separated from the business and sold is O land. O buildings. O goodwill. O trademarks. A small local convenience store is opening in your neighborhood. Inventory is limited and keeping initial start-up costs low is a priority. What type of inventory system would you recommend? O Perpetual O Periodic. O Specific identification O Company is so small one is not needed. Pal Distributers Inc values its inventory at the lower of cost and net realizable value. The following data came from the 2020 inventory, which consisted of two items: Item# 130 Item # 140 Original cost $12,000 $15,000 Selling price 15,000 26,000 Estimated selling 5,000 10,000 costs Replacement cost 13,000 15,000 Normal profit 1,500 1,000 margin The appropriate carrying value for the entire inventory when applying the lower of cost and net realizable value rule using net realizable value on an item-by-item basis would be O $25,000. O $26,000. $27,000 O $28,000 No allowance for doubtful accounts is used for the direct write off method. percentage of credit sales method. O allowance method. O aging of accounts receivable method. A key control used to mitigate the unethical manipulation of accounting records and fraudulent cash transactions is bank reconciliation separation of duties. O physical controls. O documentation