1. What kind of inventory system most applicable to sari-sari stores? A. Merchandise Inventory C. Perpetual Inventory system B. Merchandisers D. Periodic Inventory System 2. What accounting term is used for the cost of goods unsold at the end of the accounting period? A. Cost of Goods Unsold C. Perpetual Inventory B. Merchandise Inventory D. Periodic Inventory 3. Cost of Goods Sold (COGS) includes the following EXCEPT: A. Factory overhead expenses. B. The cost of storing products the business sells. C. Indirect labor costs for workers who produce the products D. The cost of products or raw materials, including freight or shipping charges. 4. The following are COGS formula to found in the cost of goods sold during an accounting period A. Gross Income= Gross Revenue-COGS B. Net Income+ Revenue-COGS- Expenses C. Beginning Inventory+ Purchases During the Period-Ending Inventory. D. Beginning Inventory - Purchase Return and Allowances - Ending Inventory. 5. Which of the following statement are TRUE? A. Cost of goods sold is also know as cost of sales. B. Cost of goods sold is the direct cost of inventory that we have sold during the year. C. Cost of goods sold is an expense charged against sales to work out a gross profit. D. None of the above 6. Which of the following describes a sales return? A. A customer receives a price discount for buying bulk. B. A customer return merchandise that is defective to the seller. C. An amount that a business receives from selling its goods or services. D. A customer does not return defective merchandise but receives a reduction in the amount it owes to the seller. 7. What cost associated with transporting goods from seller's to buyer's place of business? A. Cost of Goods Sold C. Transportation Expense B. Freight D. Transportation of Goods Expense 8. How do you calculate cost of goods sold on an income statement? A. COGS+ Beginning Inventory+ Purchases During the Period-Ending Inventory. B. COGS Beginning Inventory+ Additional Inventory - Ending Inventory C. Gross Income Gross Revenue-COGS D. Net Income+ Revenue-COGS- Expenses 9. Cost of goods sold is classified as which type of account? A. Asset C. Liability B. Expense D. Revenue 10. Mrs. Huazz Sari-Sari store has a net sales of Php. 10,000 and the cost of goods sold are Php. 6,000. What is the gross profit of Mrs. Huazz at the end of the month? A. Php. 4,000 B. Php. 6,000 C. Php. 10,000 D. Php. 16.000