Workbook Ch.7

For each of the following, select Yes or No.

1. The perpetual inventory system changes the Inventory asset account when merchandise is: Purchased (yes/no). Sold (yes/no).

4. Under the perpetual inventory system when merchandise is sold, the journal entries will include: Sales (yes/no). Inventory (yes/no).

5. The inventory account is increased for: Sales Returns (yes/no). Sales Allowances (yes/no).

9. Under the perpetual sytem, the chart of accounts may include... Freight-in (yes/no). Freight-out (yes/no).

Workbook Ch.7 (Continued)

1. The periodic inventory system changed the inventory account when merchandise is... Purchased (yes/no). Sold (yes/no).

2. Under the periodic system, purchases of merchandise are recorded in an account called... Inventory (yes/no). Purchases (yes/no).

4. Under the periodic inventory system, when merchandise is sold, the entry will include... Sales (yes/no). Inventory (yes/no).

7. Which of the following accounts is used BOTH in the period system and in the perpetual system? Sales Returns (yes/no). Purchase returns (yes/no).

9. Under the periodic system, the chart of accounts may include... Freight-In (yes/no). Freight-Out (yes/no).