Question 6 (1 point)

Which of the following ysstem requires a physical count of inventory to determine the amount of inventory to report on the balance sheet.

a

Perpetual Inventory System

b

Periodic Inventory System

c

both the systems

d

none of the above

Question 7 (1 point)

Caps Co., a stre that sell baseball hats, received a shipment of inventory. The purchase price of inventory is $ 2,000, a bulk discount of% off isreceived, the shipping charges are $ 200 and refundable taxes are $ 140. Total cost of inventory is

a

2000

b

1540

c

1400

d

1200

Question 8 (1 point)

Which accounting principle requires that a company use the same accounting methods period after period

a

Revenue Recognition Principle

b

consistency principle

c

Lower of cost and net realizable value principle

d

Business entity principle

Question 9 (2 points)

The owner of 555 Antiques, an aniques dealer, purchased an estate including a rare collection of superhero comic books for a bid price of $ 37,500. The terms of the purchase price were FOB Shipping Posint, and the cost of transporting the goods to the 555 Antiques warehouse was $ 1,200. 555 Antiques insured the shipment at a cost of $ 150. Prior to placing the goods in the store , they cleaned and refurbished some merchandise at a cost of $ 490 for labour and parts. Determine the cost of the inventory.

a

38700

b

37500

c

38850

d

39340