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Multiple Choice (2 pts each) Identify the choice that best completes the statement or answers the question. 1 The five fundamental principles of accounting information systems are: a. Control, accountability, relevance, compatibility, and flexibility. b. Historical cost, relevance, compatibility, flexibility, and cost-benefit. c. Control, relevance, compatibility, flexibility, and safety. d. Control, relevance, compatibility, flexibility, and cost-benefit. e. Historical cost, relevance, compatibility, timeliness, and cost-benefit. 2 Ciotti Furniture Company bought merchandise on credit from Johnson Supply for $5,000. Two days later Ciotti returned $1,500 of the merchandise due to damage. Ciotti would record the return of merchandise in the: a. Cash receipts journal. b. Cash payments journal. c. General journal. d. Purchases journal. c. Sales journal. 3 Lets Play-Toys sold games to a customer on credit for $2,500, terms 2/10, n/30 and the cost of the games was $1,500. When recording the collection from the customer made within the discount period, in its cash receipts journal, Lets Play-Toys would enter: * $2,500 in the Cash Dr. column and $2.500 in the Accounts Receivable Cr. column 6. $2,450 in the Cash Dr. Dolumn and $2,450 in the Accounts Receivable Cr, column. c. $2,500 in the Accounts Receivable Dr. Sales Cr. column and $2,500 in the Cash Cr. column. d. $2.450 in the Cash Dr. column, 550 in the Sales Discount De. column and $2,500 in the Accounts Receivable Cr.column. 52 500 in the Cash Dicam $2.500 in the Sales Ct. column, and $1.500 in the 3 Davis Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for the month of March. Compute the cost of Goods Sold and Ending Inventory as well as the Gross Profit for the month of March under the (a) FIFO and (b) LIFO inventory valuation models (40. Points). Units Sold at Retail Date 1-Mar 5-Mar 11-Mar 18-Mar 21-Mar 30-Mar Units Acoulred at Cost 100 units @ $20 per unit 200 units @ $30 per unit 250 units $40 per unit Beginning inventory Purchase Purchase Sale Purchase Sale 300 units @ $70 per unit 150 units @ $50 per unit 350 units @ $75 per unit N 8 9 0 U10

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