Question 6 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text (T / F) Perpetual inventory procedure requires an entry to Merchandise Inventory whenever goods are purchased, returned, sold, or otherwise adjusted, so that inventory records reflect actual units on hand at all times. Thus, an entry is required to record cost of goods sold for each sale. Select one: True False Question 7 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text (T / F) Inventory turnover ratio = (Cost of goods sold) / (Average inventory ) Select one: True False Question 8 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text (T / F) Inventory turnover measures the efficiency of the firm in managing and selling inventory. It gauges the liquidity of the firm's inventory. Select one: True False Question 9 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text (T / F) Overstated ending inventory results in an overstatement of cost of goods sold and an understatement of gross margin and net income. Select one: True False Question 10 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text (T / F) In a period of rising prices, FIFO results in the lowest cost of goods sold. Select one: True False