5. 6. 7. 8. 9. When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? A. ABUD B. C. D. Weighted Average Specific Identification The net method of recording sales violates the: Expense Recognition Principle Cost Principle A. ABCD B. C. D. ABCD The formula for calculating the COGS when using the periodic inventory system is A. FIFO LIFO Revenue Recognition Principle None of the Above B. COGS SALES LESS EXPENSES C. COGS BI+NP-EI D. COGS BEGING INVENTORY-ENDING INVENTORY-GAFS A. B. D. C. COGS=COST-SALVAGE VALUE/LIFE The Allowance method of recording Bad Debt Expenses is required because of the: ABCD Revenue Reognition Principle Expense Recognition Principle Materiality Principle Cost Principle The Direct method of recording bad debts can be used if: A. The amount is small B. the Materiality Principle can be used C. the Revenue Principle is not violated D. None of the above

5. When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? A. FIFO B. LIFO C. Weighted Average D. Specific Identification 6. The net method of recording sales violates the: A. Expense Recognition Principle B. Cost Principle C. Revenue Recognition Principle D. None of the Above 7. The formula for calculating the COGS when using the periodic inventory system is A. COGS = COST-SALVAGE VALUE/LIFE B. COGS=SALES LESS EXPENSES C. COGS=BI+NPEI D. COGS=BEGING INVENTORY-ENDING INVENTORY-GAFS 8. The Allowance method of recording Bad Debt Expenses is required because of the: A. Revenue Reognition Principle B. Expense Recognition Principle D. Materiality Principle C. Cost Principle 9. The Direct method of recording bad debts can be used if: A. The amount is small B. the Materiality Principle can be used C. the Revenue Principle is not violated D. None of the above