The number of days it takes to sell inventory is not

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14.The number of days it takes to sell inventory is not important to a
Test 3Chapters 5,6 & 715.During a period of rising prices, which inventory valuation methodresults in the lowest net income?LIFO16.The benefits of a computerized accounting system include all of thefollowing except:Never making an error.17.Computerized accounting systems:are more difficult to understandbecause parts of a transaction may be performed by different parts of thesoftware.18.Cost of merchandise sold:Appears on the Income Statement as areduction to Sales to arrive at a Gross Profit.19.A company has sales of $800,000 and cost of merchandise sold of$690,000. Its gross profit equals:$110,000.20.Gross profit:Must cover all operating expenses in order to generate aprofit for the business.21.Merchandise inventory:Is a current asset.22.The current period's ending inventory is:The next period's beginninginventory.23.A company's gross profit was $65,000 and net sales were $480,000. Thecost of merchandise sold is:$415,00024.A company's net sales were $980,000, its cost of goods sold was $640,000and its net income was $3,100. Its gross profit equals:$340,00025.Credit terms 2/10, n/30 mean:2% cash discount if the amount is paidwithin 10 days; otherwise balance is due in 30 days.26.A company uses the perpetual inventory system and recorded thefollowing journal entry: Debit Accounts Payable $4,000;CreditMerchandise Inventory $250 and credit Cash $3,750. This entry reflects:Payment on account and recognition of cash discount taken.

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Term
Spring
Professor
Logorda
Tags
Accounting, Generally Accepted Accounting Principles, FIFO and LIFO accounting, inventory valuation method, Zest Corporation

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