Question

Depreciation and amortization are:

		all the choices are correct.
		non-cash expenses.
		required even if the market value of the asset may be increasing.
		implement the expense recognition principle.

If total liabilities decreased by $25,000 and stockholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

		$20,000 increase
		$20,000 decrease
		$25,000 increase
		$30,000 increase

Which inventory costing method assumes that the most recent costs for inventory are matched against current sales?

		Specific identification
		LIFO
		Average cost
		FIFO

Answer 1