20) The main expense of a merchandiser is usualhy A) cost of goods sold B) current assets C) selling and administrative expenses - D) production overhead Which of the following entries would be made to record the purchase of inventory on account, if a company uses the perpetual inventory system? A) a debit to Purchases and a credit to Accounts Payable B) a debit to Accounts Payable and a credit to Purchases C) a debit to Merchandise Inventory and a credit to Accounts Payable D) a debit to Accounts Payable and a credit to Merchandise Inventory 22) The terms of an invoice are 3/10, n/25. This means that a B) discount of 3 percent is allowed if the invoice is paid within 10 days after the invoice date of the invoice date. of 25 percent is allowed if the invoice is paid within 10 days after the invoice date discount of 3 percent is allowed if the inwoice is paid after 25 days after the invoice date 23) Which of the following states t that the business should use the same accounting methods from period to period? A) materiality concept B) consistency principle C) conservatsm D) disclosure principle 24) Under which of the following inventory costing methods is the ending inventory purchases? A) speofic identification based on the costs of the most recent CJast-in, first-out D) first-in, first-out 25) Which of the following remains the same regardless of the inventory costing method used by a company? Assume the cost of inventory is rising. A) purchases B) cost of goods sold C) ending merchandise inventory D) net income 26) A subsidiary ledger is A) an accounting journal designed to record a specific type of transaction B) a created list of accounts used by a business entity to define each class of items for which cash is spent or received C) a complete record of business transactions recorded in a ledger over the life 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 41 Page