6. The inventory methods that result in the most current costs in the income statement and balance sheet are Income Statement FIFO LIFO Balance Sheet FIFO FIFO LIFO LIFO LIFO FIFO $10.000 15,000 7. The following information is available for Lighten Company Sales $130,000 Freight-in Ending Merchandise Inventory 12,000 Purchase Returns and Allowances Purchases 90.000 Beginning Merchandise Inventory Lighten's cost of goods sold is a $115.000 b. $110,000 C $98.000 d. $95.000 8. If ending inventory is understated, net income and assets will be Net Income Assets a Understated Understated b. Overstated Overstated Understated Unaffected d None of the above 9. One of the two constraints in accounting is a comparability bmateriality c reliability d relevance 10. The assumption that assumes a company will continue in operation long enough to carry out its existing objectives is the a economic entity assumption b going concern assumption c monetary unit assumption d time period assumption 11. A daily cash count of register receipts made by a cashier department supervisor demonstrates an application of which of the following internal control principles? a Documentation procedures b. Segregation of duties Establishment of responsibility d. Independent internal verification