ACC 304 All Assignments ACC 304 All Assignments | Page 94

56. Which of the following recording procedures would result in the
highest cost of goods sold for 2012?
1. Recording purchases at gross amounts
2. Recording purchases at net amounts, with the amount of discounts
not taken shown under "other expenses" in the income statement
a. 1
b. 2
c. Either 1 or 2 will result in the same cost of goods sold.
d. Cannot be determined from the information provided.
57. Which of the following recording procedures would result in the
highest net income for 2012?