Question 1 Merchandise inventory accounting systems can be broadly categorized into two types. They are __________.

1. Question 1 Merchandise inventory accounting systems can be broadly categorized into two types. They are __________.
2. FIFO and LIFO
3. perpetual and periodic
4. wholesale and retail
5. manufacturer and producer

5 points 

1.  Changing from the LIFO (Last-In, First-Out) to the specific identification method of valuing inventory ignores the principle of __________.
2. conservatism
3. consistency
4. disclosure
5. materiality

5 points 

1.  Which of the following statements is FALSE?
2. In a perpetual inventory system, the "cash register" at the store is a computer terminal that records sales and updates inventory records.
3. Even in a perpetual inventory system, a business must count inventory at least one a year.
4. Restaurants and small retail stores often use the periodic inventory system.
5. In a periodic inventory system, merchandise inventory and purchasing systems are integrated with the records for Accounts Receivable and Sales Revenue.

5 points 

1.  Which of the following is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement?
2. Cost of goods available for sale
3. Cost of goods sold
4. Sales discounts and sales returns and allowances