1.In a periodic inventory system, which accounts are debited in the adjusting/closing process?

Select one:

a. Purchase Discounts, but not Purchases

b. Purchases, but not Purchase Discounts

c. Both Purchase Discounts and Purchases

d. Neither Purchase Discounts nor Purchases

2.In periods of rising prices, use of LIFO rather than FIFO inventory method will have what effect on Cost of Goods Sold and Working Capital, respectively?

Select one:

a. Higher, Lower

b. Lower, Lower

c. Higher, Higher

d. Lower, Higher

3.

F.O.B. Destination indicates that:

Select one:

a. Merchandise should be included in the buyer's inventory as of the date it is shipped by the seller.

b. The seller should record sales revenue as soon as the merchandise has been shipped.

c. Title to the merchandise passes to the buyer upon receipt at the buyer's warehouse

d. Title to the merchandise passes to the buyer upon shipment by the seller.