1.	Under a perpetual inventory system, acquisition of merchandisefor resale is debited to
	A)	the Merchandise Inventory account.
	B)	the Purchases account.
	C)	the Supplies account.
	D)	the Cost of Goods Sold account.

2.	The primary source of revenue for a wholesaler is
	A)	investment income.
	B)	service revenue.
	C)	the sale of merchandise.
	D)	the sale of plant assets the company owns.

3.	Under the perpetual inventory system, in addition to making theentry to record a sale, a company would
	A)	debit Merchandise Inventory and credit Cost of Goods Sold.
	B)	debit Cost of Goods Sold and credit Purchases.
	C)	debit Cost of Goods sold and credit Merchandise Inventory.
	D)	make no additional entry until the end of the period.

4.	Which of the following should not be includedin the physical inventory of a company?
	A)	Goods held on consignment from another company.
	B)	Goods in transit from another company shipped FOB shippingpoint.
	C)	Goods shipped on consignment to another company.
	D)	All of the above should be included.

5.	Which of the following items does not result in an adjustment inthe merchandise inventory account under a perpetual system?
	A)	A purchase of merchandise.
	B)	A return of merchandise inventory to the supplier
	C)	Payment of freight costs for goods shipped to a customer
	D)	Payment of freight costs for goods received from a supplier