Question 24 2.5 pts

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Income Summary

Perpetual

Cost of Goods Sold

Periodic

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Question 25 2.5 pts

When using a periodic inventory method, what account is increased when you buy merchandise inventory?

Beginning Inventory

Supplies

Purchases

Cost of Goods Sold

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Question 26 2.5 pts

Cost of Goods Sold equals:

Beginning Inventory - Net Purchases + Freight-in + Ending Inventory.

Beginning Inventory + Net Purchases + Freight-in - Ending Inventory.

Beginning Inventory + Net Purchases + Freight-in + Freight-out + Ending Inventory.

Beginning Inventory - Net Purchases - Freight-in + Ending Inventory.

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Question 27 2.5 pts

Net Income equals:

Net Sales - Cost of goods sold - Operating expenses.

Gross Profit - Operating expenses.

All of the above are correct.

Sales - Sales Returns & Allowances - Sales Discount - Cost of goods sold - Operating Expenses.