Reference no: EM133007524

Problem 1: Under a perpetual inventory system, acquisition of merchandise for resale is debited to the

A) Purchases account.
B) Cost of Goods Sold account.
C) Merchandise Inventory account.
D) Supplies account.

Problem 2: Which of the following is a true statement about inventory systems?

A) Perpetual inventory systems require more detailed inventory records.
B) A perpetual system determines cost of goods sold only at the end of the accounting period.
C) A periodic system requires cost of goods sold be determined after each sale.
D) Periodic inventory systems require more detailed inventory records.

Problem 3: 57. goods sold each time a sale occurs, it

A) must have a computer accounting system.
B) uses a periodic inventory system.
C) uses a combination of the perpetual and periodic inventory systems.
D) uses a perpetual inventory system.