1) The recognition of which of the following expenses exemplifies the application of the matching principle? A

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1) The recognition of which of the following expenses exemplifies the application of the matching principle?

A. Advertising.

B. Research and development.

C. President's salary.

D. Cost of goods sold.

2.

The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:

A. FIFO.

B. LIFO.

C. Weighted average.

D. None of the above.

3.

Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each. Chess Top also sold 500 units during the month. Using the average cost method, what is the amount of ending inventory?

A. $10,500.00

B. $10,131.00

C. $33,400.00

D. $33,770.00

4.

Sasa Systems accounts for its investment in Water Engineering as available for sale. Sasa's balance in accumulated other comprehensive income with respect to the Water investment is a credit balance of $10,000, and Sasa reports the investment at $100,000 on its statement of financial position. Sasa purchased the Water investment for (ignore taxes):

A. $90,000

B. Cannot be determined from this information.

C. $100,000

D. $110,000

5.

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:Selling price $60,000Cost $45,000Sales commission 10%In applying the LCM rule, the inventory would be valued at:

A. $45,000

B. $60,000

C. Cannot be determined.

D. $54,000