None of the above answers is correct. QUESTION 24 accounts for merchandise inventory on a transaction-by-transaction basis. O A periodic inventory system O A perpetual inventory system O An inventory accounting system Both A periodic inventory system and A perpetual inventory system are correct. QUESTION 25 When there is more than one product inventory the Accounts Payable will be less than the subsidiary ledger. the inventory ledger is not updated. O only one inventory record is used to track both inventory items O a new inventory record tracks each individual product. QUESTION 26 The weighted average method: calculates an average unit cost by dividing the total cost of goods sold by the total units sold. calculates an average unit cost by dividing the total cost of goods available for sale by the total units of goods available for sale. calculates an average unit cost by adding the total cost of goods available for sale to the total units of goods available for sale. None of the above answers is correct. QUESTION 27 This method assumes that the oldest goods are sold first. O FIFO Specific invoice method OLIFO Weighted average method QUESTION 28 The gross profit method: determines the value of the ending inventory using a cost-to-retail ratio. is often used for interim financial reports. determines the value of the ending inventory using a predetermined gross profit rate. Both determines the value of the ending inventory using a cost-to-retail ratio and is often used for interim financial reports are correct. QUESTION 29