Foramerchandisingcompany:
A. thebalancesheetreportsthecostoftheinventorythatwasonhandatthebeginningoftheperiod.
B. theincomestatementreportsthecostoftheinventorysoldduringtheperiod.
C. endinginventorycanbeanassetoranexpense.
D. inventoryisgenerallynotasignificantfactorintheiroperations.
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Asmall________wouldmostlikelyuseaperpetualinventorysystem.
A. automobiledealership
B. fabricstore
C. restaurant
D. flowershop
Aperiodicinventorysystem:
A. isusedforinexpensivegoods.
B. isnotexpensivetomaintain.
C. doesnotkeeparunningrecordofinventoryonhand.
D. isalloftheabove.
Underaperpetualinventorysystem:
A. theremustbeaphysicalcounttodeterminetheamountoftheendinginventory.
B. theremustbeaphysicalcounttodeterminethecostofgoodssold.
C. theinventoryrecordsmustbeupdatedmanually.
D. itcanbereadilydeterminedifthereisasufficientsupplyofinventoryonhand.
Underaperpetualinventorysystem,whenasaleismade,thecompany:
A. makesajournalentrytorecordthesaleonly.
B. makesajournalentrytorecordonlythecostofgoodssold.
C. makesajournalentrytorecordthesaleandthecostofgoodssold.
D. doesnotneedtomakeajournalentry.
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