MULTT 1 Cost of goods sold is determined only at the end of the accounting period in a perpetual inventory system. b a periodic inventory system. c both a perpetual and a periodic inventory system. d. neither a perpetual nor a periodic inventory system. 2. Which of the following expressions is incorrect? a. Gross profit -operating expenses net income b. Sales -cost of goods sold -operating expenses-net income c. Net income+ operating expenses gross profit d Operating expenses-cost of goods sold = gross profit 3. If a company determines cost of goods sold each time a sale occurs, it a. b. must have a computer accounting system. uses a combination of the perpetual and periodic inventory systems. uses a periodic inventory system. (a) uses a perpetual inventory system. 4. 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. Sales d,/ Merchandise Inventory. 5. A credit sale of $800 is made on April 25, terms 2/10, n/30, on which a return of $50 is ranted on April 28. What amount is received as payment in full on May 4? $735 $784 C. $800 d $750 : 33 In a perpetual inventory system, the Cost of Goods Sold account is used a. only when a cash sale of merchandise occurs. only when a credit sale of merchandise occurs. c) only when a sale of merchandise occurs n d. whenever there is a sale of merchandise or a return of merchandise sold