I need help with accounting multiple choice questions

Multiple Choice 7-1 The cost of inventory under a perpetual system does not include which of the following? a. Inventory price b. Freight charges c. Sales commissions d. Sales taxes on inventory purchase 2. eBook Multiple Choice 7-2 The Cost of Goods Sold account represents the cost of inventory: a. remaining in a company's inventory account at year end and classified as ending inventory. b. purchased during the year plus inventory sold. c. sold during the year. d. available for sale at the beginning of the year. 3. eBook Multiple Choice 7-3 When inventory is bought under a perpetual inventory system, what happens to the Inventory and Cost of Goods Sold accounts, respectively? a. No change, Increase b. Increase, No change c. Increase, Increase d. Decrease, No change 4. eBook Multiple Choice 7-4 When an inventory item is sold under a perpetual inventory system: a. the Inventory account is not affected. b. inventory is decreased and Cost of Goods Sold is increased. c. inventory is increased and Cost of Goods Sold is increased. d. neither Inventory nor Cost of Goods Sold is affected until the end of the current period. 5. eBook Multiple Choice 7-5 A company purchases a unit of inventory for $1.50 and then later purchases a second for $2.00. The company then sells one unit for $4.50. After the sale, the company purchases an additional unit for $2.50. The company uses a perpetual inventory system. Given these facts, which of the following is true? a. Cost of Goods Sold under FIFO is $1.50. b. Ending Inventory under LIFO is $4.00. c. Cost of Goods Sold under Moving Average is $1.75. d. All of these choices are true. 6. eBook Multiple Choice 7-6 A company purchases a unit of inventory for $1.50, another for $2.00 and then a third for $2.50. The company then sells one unit for $4.50. The company uses a perpetual inventory system. Given these facts, which of the following is true? a. Ending Inventory under FIFO is $1.50 b. Cost of Goods Sold under LIFO is $2.50 c. Cost of Goods Sold under Moving Average is $4.50 d. Ending Inventory under LIFO is $4.50 7. eBook Multiple Choice 7-8 In a period of rising prices, under which inventory valuation method would ending inventory have the highest assigned value? a. FIFO b. LIFO c. Moving average d. All methods will result in the same value 8. eBook Multiple Choice 7-9 In rising prices, which inventory costing method generally results in less current taxes paid by the company? a. LIFO b. FIFO c. Moving Average d. All methods result in the same taxes paid 9. eBook Multiple Choice 7-12 A company overstates its ending inventory by $2,000. Which of the following is true concerning the effect of this error on cost of goods sold in the year of the error? a. Cost of goods sold will be unaffected b. Cost of goods sold will be understated c. Cost of goods sold will be overstated d. Cannot tell from given information 10. eBook Multiple Choice 7-13 A company understates its ending inventory by $2,000. Which of the following is true concerning the effect of this error on cost of goods sold in the year after the error (assuming no other errors)? a. Cost of goods sold will be unaffected b. Cost of goods sold will be understated c. Cost of goods sold will be overstated d. Cannot tell from given information 11. eBook Multiple Choice 7-15 Suppose that Lee Enterprises usually generates a 25% gross profit on sales. If Lee's annual sales are $100,000, what is Lee's estimated cost of goods sold using the gross profit method? a. $0 b. $25,000 c. $75,000 d. $100,000 12. eBook Multiple Choice 7-16 Suppose that Lee Enterprises usually generates a 40% gross profit on sales. If Lee's annual sales are $130,000 and cost of goods available for sale is $90,000, what is Lee's estimated ending inventory using the gross profit method? a. $38,000 b. $90,000 c. $78,000 d. $12,000 13. eBook Multiple Choice 7-17 What principle or assumption results in the use of lower-of-cost-or-market? a. Historical cost b. Conservatism c. Going concern d. Materiality 14. eBook Multiple Choice 7-18 Under the lower-of-cost-or-market rule, an inventory item with a selling price of $6.00, a historical cost of $2.50, and a replacement cost of $3.50 would be reported at: a. $6.00. b. $3.50. c. $2.50. d. cannot tell from given information. 15. eBook Multiple Choice 7-20 CG Films generates Cost of Goods Sold of $135,000 for the year. Inventory at the beginning and ending of the year was $40,000 and $46,000, respectively. Calculate CG's inventory turnover ratio. a. 3.1 b. 3.4 c. 116.2 d. 0.3 16. eBook Multiple Choice 7-21 Horizontal analysis of inventory: a. calculates inventory as a percentage of total assets. b. calculates cost of goods sold as a percentage of revenues. c. highlights the change in inventory as a percentage of the prior year's inventory balance. d. both "calculates inventory as a percentage of total assets" and "calculates cost of goods sold as a percentage of revenues" are correct. 17. eBook Multiple Choice 7-22 Vertical analysis of inventory: a. calculates inventory as a percentage of total assets. b. calculates cost of goods sold as a percentage of revenues. c. highlights the change in inventory as a percentage of the prior year's inventory balance. d. both "calculates inventory as a percentage of total assets" and "calculates cost of goods sold as a percentage of revenues" are correct. 18. eBook Multiple Choice 7-23 If a company uses a periodic inventory system and returns an inventory item to a vendor, the company would record the return as: a. a decrease to the Inventory account. b. an increase to the Cost of Goods Sold account. c. an increase to the Purchase Returns and Allowances account. d. an increase to the Purchase Discounts account. 19. eBook Multiple Choice 7-24 Which of the following is not a part of the process to calculate costs of goods sold under a periodic inventory system? a. Count the ending inventory on hand at the end of the period b. Assign a cost to the ending inventory using an inventory costing method c. Use the cost of goods sold model to calculate cost of goods sold d. Each of the above is part of the process