QUESTION 47 The single-step income statement: A. provides more information for computing financial ratios. B. includes gross profit. C. combines cost of goods sold with other expenses. D. does not give enough information to compute net income. QUESTION 48 Given equal circumstances and generally rising costs, which inventory method will result in the highest net income? A. LIFO B. FIFO C. Average cost D. Income tax expense for the period will be the same under all assumptions. QUESTION 49 Oakville Inc. purchased a 12-month insurance policy on March 1, 2017 for $2,400. At March 31, 2017, the adjusting journal entry to record expiration of this asset will include: A. a debit to Insurance Expense and a credit to Prepaid Insurance for $200. B. a debit to Prepaid Insurance and a credit to Cash for $2,400. C. a debit to Insurance Expense and a credit to Cash for $200. D. a debit to Prepaid Insurance and a credit to Insurance Expense for $2400