25 When a periodic inventory system is used

inventory shrinkage is impossible to calculate.

timely data is of utmost importance.

cost of goods sold is always known.

every inventory transaction is reflected in the inventory account.

28 The inventory writedown incurred from applying the lower of cost and net realizable value rule to inventory is

not reflected on the Statement of Financial Position.

an adjustment to cost of goods sold.

not reflected on the Statement of Income.

not considered a permanent loss.

30 The gross margin estimation method estimates the cost of goods sold by

multiplying the sales revenue by cost-to-sales ratio.

multiplying the cost of goods available by the gross margin percentage.

multiplying the costs to sales ratio by purchases.

multiplying the sales revenue by the inventory turnover ratio.

35

The unexpensed portion of a depreciable asset is called

accumulated depreciation.

net realizable value.

estimated residual value.

net present value.