1- Gross margin is the excess of net sales revenue over cost ofgoodsold

True or False

2- It is necessary to do a physical count of inventory when using a perpetual inventory system

True or False

3- A FIFO perpetual inventory system

Select one

_ assigns the most recent costs to cost ofgoodssold when goods aresold

_ does not match the typical physical flow ofgoods

_ reports the oldest costs for ending inventoryvalues

_ assigns the most recent costs to endinginventory

4- Ajewellerselling uniquehigh priceditems ofjewellerywould most likely usewitchmethod of inventory costing

Selctone

_ specific unit cost

_ weighted average cost

_ FIFO

_ average cost

5- All balance sheets have inventory listed as an asset

True or False

6- The two main types of inventory system are the perpetual system and the periodic system

True or False

7- Measuring the cost of inventory is difficult when prices are constant

True or False

8- Under the FIFO method ending inventory is valued based on the most recent purchases

True or False

9- Inventory is classified

Select one

_ as aproperty ,plant ,and equipment asset on the balance sheet

_ as a current liability on the balance sheet

_ as either an investment or a current asset on the balance sheet

_ as a current asset on the balance sheet

10- Aperpetualinventory system

Select one

_ does not required a physical count at the end of the fiscalyear

_ is used only for inexpensivegoods

_ keeps a running record of allgoods

_ can be maintained only with computersoftware