7. The operating cycle of a merchandising company A. Begins with the purchase of merchandise 8. Ends with the collection of cash from the sale of merchandise C. Varies among types of businesses D. Applies to both cash and credit sales E. All of the above 8. A perpetual inventory system A. Gives a continuous record of the amount of inventory on hand B. Uses a Purchases account for the cost of new merchandise purchased C. Was historically used by companies that sold large quantities of low-value items D. Is not widely used in practice E. All of the above 9. Merchandise inventory includes A. All goods owned by a company and held for sale B. Goods in transit C. Goods on consignment D. Damaged goods E. All of the above 10. Goods in transit are included in inventory A. At any time in transit B. When the purchaser is responsible for paying freight charges C. When the supplier pays the freight charges D. When ownership has passed to the purchaser E. When the purchaser is responsible for paying freight charges and when ownership has passed to the purchaser 11. Trekking Company markets a climbing kit and uses a perpetual inventory system to account for its merchandise. The beginning balance of the inventory and transactions during danuary were as follows: If the ending inventory is valued at $357, what inventory cost flow assumption was used? A. Average costing B. FIFO. C. Weighted-average. 0. Specific identification. E. Retail