3 true/false questions, and 1 multiple-choice one

1. If a company uses the LIFO method, it generates the highest gross-margin and, consequently, the highest net income and income tax expense.

True

False

2. According to the matching concept, revenue is paired with the expenses that were incurred to generate this revenue.

True

False

5. Elephant Shop purchased 50 coffee mugs at a cost of $5 and 70 coffee mugs at a cost of $7 two weeks later. 100 mugs have been sold. If the LIFO method is used, the cost of goods sold will be $640.

True

False

Eight:

8. The credit terms 2/10, n/30 are interpreted as what?

30% cash discount if the amount is paid within 2 days, or the balance due in 10 days

30% discount if paid within 10 days

2% cash discount if the amount is paid within 10 days, or the balance due in 30 days

10% cash discount if the amount is paid within 2 days, or the balance due in 30 days