1. Which inventory costing method results in the lowest ending inventory during a period of rising merchandise inventory cost?
Weighted-average
Specific identification
First-in, first-out (FIFO)
Last-in, first-out (LIFO)
2. Some companies account for purchases of equipment less than $500 as expenses instead of as assets. This policy is most closely linked to which accounting principle?
Conservatism
Lower-of-cost-or-market
Materiality concept
Consistency principle