20) The main expense of a A) oost of goods sold B) ounent assetbs C) selling and administrative expenses D) production overhead of inventory on account f a company uses the ing ere wo mde to recond he purchase o S perpetual inventory system A) a debit to Purchases and a credt to Accounts Payable to Merchandse Inventory and a credit to Accounts Payable ED) a debit to Accounts Payable and a credt to Merchandise Inventory B) a debit to Accounts Payable and a credit to Purchases of the invoice date. 22) The terms of an invoice are 3/10, n25. This means that a A) discount of 10 percent is allowed if the invoice is paid within three days ave B) discount of 3 percent is allowed if the invoice is paid within 10 days after the invoice date after the invoice date Cidiscount of 25 percent is allowed if the invoice is paid within 10 days after the ivoice o D) discount of 3 percent is allowed if the invoice is paid after 25 days after the invoice date 23) Which of the following states that the business should use the same accounting methods from period to period? A) materiality concept B) consistency prineiple C) conservatism D) disclosure principle which of the following Inventory costing methods is the ending inventory based on the costs of the most recent purchases? A) specific identification B) Clast-in, first-out D) first-in, first-out 25) A subsidiary ledger is A) an accounting joumal designed to record a specific type of transaction B) a created list of accounts used by a business entity to define each class of inems for which cash is spent or received C) a complete record of business transactions recorded in a ledger over the le of a company D) a record of accounts that provide supporting details on individual balances, the total of which appears in a general ledger account 26) Which of the following serves as the yournal of last resort? A) purchases journal B) sales jounal C)general journal D) cash payments journal 27) Which of the following is representative of safeguarding assets? A) attaching electronic sensors to merchandise inventory B) reducing expense to increase operating proff C) increasing operating profit to increase net income D) allowing company accountants to handle cash Page