Que. 1. Discounting is known as: (1 mark) a)-the process of selling a promissory note b)-Sell note prior to maturity date for cash c)-It is normally done "with recourse" d)-None of the above. e)-All the above Que. 2 Net Sales - Cost of Goods Sold = (1 mark) Que. 3 Cost of goods available for sale - Ending inventory = (1 mark) Que. 4 In FOB shipping point: (1 mark) a) seller incurs the transportation costs b) buyer incurs the transportation costs b) manufacturer incurs the transportation costs d) transport company incurs the transportation costs Que. 5 First-In, First-Out Method (FIFO): (1 mark) a) Assigns the oldest costs to ending inventory b) Assigns the most recent costs to cost of goods sold c) Assigns the oldest costs to cost of goods sold d) Assigns the most recent costs to ending inventory Que. 6 Replacement cost is: (1 Mark) a) the current cost of a unit of sales b) the current cost of a unit of purchase c) the current cost of a unit of inventory d) the current cost of a unit of liabilities