2. Acceptable inventory cost flow assumptions in Canada include a) FIFO b) Specific identification. c) Weighted average method. d) FIFO and specific identification. e) All of the above. 3. During a period of steadily rising prices, which inventory cost flow assumption results in reporting the highest inventory value? a) Specific identification b) Average cost c) Moving weighted average d) FIFO e) Any of the abovel 4. Generally accepted accounting principles require that the inventory of a company be reported at: a) Net realizable value b) Historical cost c) Lower of cost and net realizable value d) Replacement cost e) Purchase price 5. If an inventory amount is reported in error, it can cause a misstatement in a) Cost of goods sold b) Gross profit c) Net income d) Current assets