1. What happens to the Cost of Goods Sold in the profit and loss report when you sell a product? A. Nothing happens. B. It increases. C. It is closed out. D. The valuation automatically adjusts. 2. Match each inventory report to what it shows. INVENTORY WHAT THEY SHOW REPORTS A. Physical 1. Shows the list that contains Inventory inventory reports B. Inventory 2. Shows the value of inventory and Valuation _ _ average cost per product Detail 3. Shows the specifics for C. Sales by transactions that affect inventory Product/ value D. Inventory 4. Compares inventory on hand to Valuation inventory recorded in QuickBooks Summary 3. Mason wants to return a lawn ornament he purchased from you with cash. What do you do? A. Create a vendor credit associated with Mason's account record. B. Politely explain that all cash sales are final. C. Issue a credit memo so Mason's next purchase is discounted by the amount of the lawn ornament. D. Give Mason his money back and create a refund receipt. 4. What method of inventory valuation does QuickBooks Online use? A. FIFO B. Average cost C. Specific identification method D. LIFO