1. Up-to-date balances in the inventory account can be obtained under an perpetual inventory system. (Points : 10) True False

Question 2. 2. The cost of the ending inventory using FIFO is based on the costs last-in and cost of the ending inventory using LIFO is based on the costs first-in. (Points : 10)

True False

Question 3. 3. LIFO assumes that the cost of the last goods purchased are the costs of the last goods sold. (Points : 10)

True False

Question 4. 4. FIFO assumes that the costs of the first goods purchased are the costs of the first good sold. (Points : 10)

True False

Question 5. 5. Goods in transit are inventory items being transported. (Points : 10)

True False

Question 6. 6. FOB destination means that the seller pays the shipping charges. (Points : 10)

True False

Question 7. 7. Merchandise inventory is in its finished stage and does not need further processing. (Points : 10)

True False

Question 8. 8. Cost of Goods Sold can be found on the income statement. (Points : 10)

True False

Question 9. 9. Net sales minus Cost of Goods Sold = Gross Profit. (Points : 10)

True False

Question 10. 10. Merchandise inventory is not a current asset. (Points : 10)

True False