QUESTION 7 The inventory costing method that assigns the most recent costs to costs of goods sold is: O a. FIFO. b. specific identification. CLIFO. d. average cost QUESTION 8 Use the following data to calculate the cost of goods sold using the LIFO method: September 1 Beginning inventory 15 units at $20 each September 10 Purchase 20 units at $25 each September 20 Purchase 25 units at $28 each September 30 Sales 30 units a. $825 b. $750 c. $800 d. $675 QUESTION 9 Which of the following in a characteristic of a fixed asset? a. Fixed assets cannot be written off or sold. b. Fixed assets are long-term or relatively permanent assets. c. Fixed assets include assets such as inventory and supplies. d. Fixed assets are offered for sale as part of normal operations. QUESTION 10 Which of the following is an example of an expenditure on a fixed or capital asset? a. Cleaning the carpet in an office. b. Regular tune-up for a company vehicle. c. Replacing an entire engine in a company vehicle. d. Replacing the light bulbs in the factory. QUESTION 11 Which of the following asset lists are all long-term assets? a. Building, cash, supplies b. Patent, inventory, cash c. Building, land, patents d. Land, supplies, patent QUESTION 12 Recording depreciation: a. increases net income, decreases cash flows, decreases the book value of fixed assets. b. decreases net income, increases cash flows, increases the book value of fixed assets, c. has no effect on net income, decreases cash flow, decreases the book value of fixed assets. d. decreases net income, has no effect on cash flows, decreases the book value of fixed assets