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Question 1 Merchandise inventory accounting systems can be broadly categorized into two types. They are __________.
- Question 1 Merchandise inventory accounting systems can be broadly categorized into two types. They are __________.
- FIFO and LIFO
- perpetual and periodic
- wholesale and retail
- manufacturer and producer
5 points
Question 2- Changing from the LIFO (Last-In, First-Out) to the specific identification method of valuing inventory ignores the principle of __________.
- conservatism
- consistency
- disclosure
- materiality
5 points
Question 3- Which of the following statements is FALSE?
- In a perpetual inventory system, the "cash register" at the store is a computer terminal that records sales and updates inventory records.
- Even in a perpetual inventory system, a business must count inventory at least one a year.
- Restaurants and small retail stores often use the periodic inventory system.
- In a periodic inventory system, merchandise inventory and purchasing systems are integrated with the records for Accounts Receivable and Sales Revenue.
5 points
Question 4- Which of the following is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement?
- Cost of goods available for sale
- Cost of goods sold
- Sales discounts and sales returns and allowances