6.	Under a perpetual inventory system
	A)	accounting records continuously disclose the amount of inventory.
	B)	increases in inventory resulting from purchases are debited to purchases.
	C)	there is no need for a year-end physical count.
	D)	the account purchase returns and allowances is credited when goods are returned to vendors.

7.	Which of the following would not be classified as a contra account?
	A)	Sales
	B)	Sales Returns and Allowances
	C)	Accumulated Depreciation
	D)	Sales Discounts

8.	In the credit terms of 1/10, n/30, the 1 represents the
	A)	number of days in the discount period.
	B)	full amount of the invoice.
	C)	number of days when the entire amount is due.
	D)	percent of the cash discount.

9.	The term "FOB" denotes
	A)	free on board.
	B)	freight on board.
	C)	free only (to) buyer.
	D)	freight charge on buyer.

10.	The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit
	A)	Accounts Payable.
	B)	Purchase Returns and Allowances.
	C)	Sales.
	D)	Merchandise Inventory