Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with uploaded doc Quiz 3 Question 1 Under the perpetual inventory system, when merchandise is sold, its cost is transferred from the Merchandise

please help with uploaded docimage text in transcribed

Quiz 3 Question 1 Under the perpetual inventory system, when merchandise is sold, its cost is transferred from the Merchandise Inventory account to the Sales account. True False Question 2 Under the perpetual inventory system, the Cost of Goods Sold account is updated continually throughout the period. True False Question 3 Under the periodic inventory system, the amount of inventory on hand is accurate only on the balance sheet. True False Question 4 An advantage of using the perpetual inventory system is that it requires less record keeping than the periodic system. True False Question 5 The perpetual inventory system relies on a physical count of merchandise for its balance sheet amount. True False Question 6 Each of the following companies is a merchandising business EXCEPT a: a. Candy store b. Car wash c. Wholesale parts company d. Furniture store Question 7 The perpetual inventory system : a. reduces the amount of clerical work b. eliminates the need for a physical count of the inventory c. keeps a continuous record of the quantity of inventory items d. All answers are correct Question 8 The operating cycle for a merchandiser is: a. the period of time it takes to sell a unit of inventory b. the same for all companies c. most generally a year d. the time to buy, hold, sell, and collect payment for a sale Question 9 Gross margin is the difference between net sales and: a. net income b. cost of goods sold plus operating expenses c. operating expenses d. cost of goods sold Question 10 Which of the following is NOT considered an operating expense: a. general office expenses b. costs of goods sold c. freight-out expense d. advertising expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting

Authors: Donna Kay

15th Edition

0077826841, 9780077826840

More Books

Students also viewed these Accounting questions

Question

Name the different levels of the hierarchy of needs. (p. 264)

Answered: 1 week ago

Question

Values: What is important to me?

Answered: 1 week ago

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago