In a periodic inventory system the cost of goods sold

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Income Tax Fundamentals 2019
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Chapter 3 / Exercise 4
Income Tax Fundamentals 2019
Whittenburg/Gill
Expert Verified
23) In a periodic inventory system, the cost of goods sold is determined by the following end-of-period computation: Beginning Inventory + Purchases - Ending inventory = Cost of Goods Sold.A) TrueB) FalseAnswer:
AExplanation: Diff: 2Topic: Periodic Inventory SystemsLearning Objecti: 06-04 Explain how a periodic inventory system operates.Bloom's: UnderstandAACSB: Analytical Thinking24) A large company with many different kinds of low-cost items would tend to use a perpetual inventory system.
AExplanation: Diff: 2Topic: Perpetual Inventory Systems; Periodic Inventory Systems; Selecting an Inventory SystemLearning Objecti: 06-03 Account for purchases and sales of merchandise in a perpetual inventory system.; 06-04 Explain how a periodic inventory system operates.; 06-05 Discuss the factors to be considered in selecting aninventory system.Bloom's: UnderstandAACSB: Analytical Thinking25) Today, most large merchandising companies use a perpetual inventory system.
AExplanation: Diff: 1Topic: Selecting an Inventory SystemLearning Objecti: 06-05 Discuss the factors to be considered in selecting an inventory system.Bloom's: RememberAACSB: Analytical Thinking26) A factor that might suggest that a periodic inventory system is appropriate is that all merchandise is stored at the sales site.
AExplanation: Diff: 1Topic: Selecting an Inventory SystemLearning Objecti: 06-05 Discuss the factors to be considered in selecting an inventory system.
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Income Tax Fundamentals 2019
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 4
Income Tax Fundamentals 2019
Whittenburg/Gill
Expert Verified
Bloom's: RememberAACSB: Analytical Thinking27) A factor that might suggest that a perpetual inventory system is appropriate is that inventory includes many different kinds of low-cost items.A) TrueB) FalseAnswer:
BExplanation: Diff: 1Topic: Selecting an Inventory SystemLearning Objecti: 06-05 Discuss the factors to be considered in selecting an inventory system.Bloom's: RememberAACSB: Analytical Thinking28) Net Sales is computed as total sales revenue less sales returns and allowances less sales discounts.
AExplanation: Diff: 1Topic: Transactions Relating to PurchasesLearning Objecti: 06-06 Account for additional merchandising transactions related to purchases and sales.Bloom's: RememberAACSB: Analytical Thinking29) If a transaction takes place with terms 2/10, n/30, the "10" refers to the percent discount a purchaser can take if payment is made within 2 days.
BExplanation: Diff: 1Topic: Transactions Relating to PurchasesLearning Objecti: 06-06 Account for additional merchandising transactions related to purchases and sales.Bloom's: RememberAACSB: Analytical Thinking

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