True Or False Quiz Inventory Costing Methods Under A Perpetual Inventory System

5 Questions | Total Attempts: 1225

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True or False Quiz Inventory Costing Methods under a Perpetual Inventory System


Questions and Answers
  • 1. 
    Using fifo, costs are included in the merchandise sold in the order in which they were incurred
    • A. 

      False

    • B. 

      True

  • 2. 
    Using lifo, the cost of units sold is the cost of the most recent purchases.
    • A. 

      True

    • B. 

      False

  • 3. 
    The merchandise inventory account at the beginningof an accounting period indicates the merchandise in stock on that date. Purchases are recorded by debiting Cash or Accounts Payable and crediting Merchandise Inventory
    • A. 

      True

    • B. 

      False

  • 4. 
    No entry is made at the time of a sale to the Cost of Goods Sold Account or the Inventory Account when the Perpetual Inventory Method is used.
    • A. 

      True

    • B. 

      False

  • 5. 
    Average cost method is rarely used in a perpetual inventory system
    • A. 

      True

    • B. 

      False

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