12. Expenses are recognized when: they conteibute to the produstion of revenue C) they are billed by the supplier D) the invoice is received. uetion o 13. Gross profit equals the difference between A) net income and operating expenses. B) sales revenue and cost of goods sold. C) sales revenue and operating expenses. D) sales revenue and cost of goods sold plus opcrating expenses A company using a perpetual inventory system that returns goods previously purchased on credit would A) debit Accounts Payable and credit Inventory. B) debit Sales and credit Accounts Payable. C) debit Cash and credit Accounts Payable. D) debit Accounts Payable and credit Purchases 14. In a perpetual inventory system, cost of goods sold is recorded A) 15. B) C) D) each time a sale occurs on a daily basis. on a monthly basis. on an annual basis. When a perpetual inventory system is used, which of the following is a purpose of taking a physical inventory? A) To check the accuracy of the perpetual inventory records B) To determine cost of goods sold for the accounting period 16. Allare a purpose of taking a physical inventory when a perpetual inventory sysiem is used To compute inventory ratios C) D)