The gross profit ratio measures how much of each dollar of net sales is gross profit. True or False True False There is no difference in the amount of inventory calculated by the periodic and perpetual inventory systems when using the FIFO cost flow assumption. True or False True False The gross profit ratio measures how much of each dollar of gross sales is gross profit. True or False True False If your inventory is destroyed by fire you can estimate the amount of inventory destroyed if you know: beginning inventory, purchases, net sales, and gross profit ratio. True or False True False All businesses should take an inventory count once each year to avoid inventory errors or shortages. True or False True False All businesses should take an inventory count once each year to identify inventory errors or shortages. True or False True False The retail inventory method of estimating inventory can be used to estimate the amount of inventory shortage if a physical count is also done. True or False True False There is no difference in the amount of inventory calculated by the periodic and perpetual inventory systems when using FIFO or weighted average cost flow assumptions. True or False True False There is no difference in the amount of inventory calculated by the periodic and perpetual inventory systems when using the FIFO cost flow assumption. True or False True False The merchandise turnover ratio is used to measure profitability. True or False True False Goods in transit are included in inventory Multiple Choice At any time in transit When the purchaser is responsible for paying freight charges When the supplier pays the When the supplier pays the freight charges When ownership has passed to the purchaser O When the purchaser is responsible for paying freight charges and when ownership has passed to the purchaser