Question 1.1. When merchandise sold is assumed to be in the order in which the expenditures were made, the

Question 1.1.  When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called 

        first-in, last-out.

        last-in, first-out.

        first-in, first-out.

        average cost.

Question 2. 2. Allowance for Doubtful Accounts is listed on the balance sheet under the caption 

        stockholders' equity.

        investments.

        fixed assets.

        current assets.

Question 3. 3. In reference to a promissory note, the person who makes the promise to pay is called the 

        maker.

        payee.

        seller.

        receiver.

Question 4. 4. The two methods of accounting for uncollectible receivables are the allowance method and the 

        equity method.

        direct write-off method.

        interest method.

        cost method.

Question 5. 5. Receivables are usually a significant portion of 

        total current liabilities.

        total liabilities.

        total current assets.

        total assets.

Question 6. 6. A note receivable due in 18 months is listed on the balance sheet under the caption 

        long-term liabilities.

        fixed assets.

        current assets.

        investments.

Question 7. 7. A note receivable due in five years is listed on the balance sheet under the caption 

        investments.

        current assets.

        fixed assets.

        stockholders' equity.

Question 8. 8. A 60-day, 12% note for $15,000 dated May 1 is received from a customer on account. 

The maturity value of the note is 

        $15,300.        

        $15,000.

        $14,700.

        $16,800.

Question 9. 9. The due date of a 90-day note dated July 5 is 

        September 30.

        October 2.

        October 3.            

        October 1.

Question 10. 10. The inventory data for an item for November are: 

Nov. 1     Inventory 25 units at  $20

     10     Purchased 30 units at  $21

     30     Purchased 10 units at  $22

             Sold 35 units

Using the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30?

        $640   

        $605

        $623

        $660