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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.

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

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