On July 10, Arbour Inc. purchased $5,000 of inventory on terms of 2/10, n/30. The amount due on August 25 is

	$4,900.
	$5,100.
	$4,990
	$5,000.

The largest current asset for a merchandiser is usually

	Inventory
	Prepaid Expenses
	Cash
	Accounts Receivable

The journal entry by the buyer to record a return of merchandise purchased on account under a perpetual inventory system would credit

	Sales
	Accounts Payable
	Inventory
	Purchase Returns ans Allowances

All of the following bank reconciliation items would require an adjusting entry on the depositors books except

	a bank service cahrge
	a customer's NSF cheque
	deposits in transit
	interest earned

To accurately determine inventory quantities, a company must

	take a physical inventory.
	rely on the warehouse records.
	use the perpetual inventory system.
	employ an independent company to conduct inventory counts.

Which of the following statements regarding inventories is correct?

	Under FIFO, the ending inventory is based on the latest units purchased.
	FIFO seldom coincides with the actual physical flow of inventory.
	It is generally good business management to sell the most recently acquired goods first.
	FIFO assumes that the costs of the earliest goods acquired are the last to be sold.

Selection of an inventory cost formula by management should be influenced most by the

	Income Tax Effects
	Fiscal Year End
	Goal of Reporting Inventory at its Lowest Cost
	Physical Flow of Goods