17.	The factor which determines whether or not goods should be included in a physical count of inventory is
	A)	physical possession.
	B)	legal title.
	C)	management's judgment.
	D)	whether or not the purchase price has been paid.

18.	Inventory costing methods place primary reliance on assumptions about the flow of
	A)	goods.
	B)	costs.
	C)	resale prices.
	D)	values.

19.	In periods of rising prices, which is an advantage of using the LIFO inventory costing method?
	A)	Ending inventory will include latest (most recent) costs and thus be more realistic.
	B)	Cost of goods sold will include latest (most recent) costs and thus will be more realistic.
	C)	Net income will be the highest and thus reflect the prosperity of the company.
	D)	Phantom profits are reported.

20.	The collection of a $600 account within the 2 percent discount period will result in a
	A)	debit to Sales Discount for $12.
	B)	debit to Accounts Receivable for $588.
	C)	credit to Cash for $588.
	D)	credit to Accounts Receivable for $588.