Accounting Test #2 Chapter 5 Wileyplus Verified Exam Questions and
Answers Latest update 2026/2027
Question:
Which of the following statements about a periodic inventory system is true?
Answer:
A.
Question:
A. Companies determine cost of goods
sold only at the end of the accounting period.
B. The periodic system provides better
control over inventories than a perpetual system.
C. The increased use of computerized
systems has increased the use of the periodic system.
D. Companies continuously maintain
detailed records of the cost of each inventory purchase and sale.
Answer:
Question:
The operating cycle of a merchandising company is ordinarily _____________ that of a service firm.
Answer:
longer than
Question:
Which of the following statements is correct?
Answer:
C.
, Question:
A. A periodic inventory system provides
better control over inventories than does a perpetual inventory system.
B. A periodic inventory system computes
cost of goods sold each time a sale occurs.
C. A perpetual inventory system provides
better control over inventories than does a periodic inventory system.
D. A perpetual inventory system computes
cost of goods sold only at the end of the accounting period.
Answer:
Question:
Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for
which it must pay the shipping charges. Which of the following is one part of the required journal
entry when Jax pays the shipping charges of $200?
Answer:
A debit to Inventory for $200
Question:
Cosmos Corporation, which uses a perpetual inventory system, purchased $2,000 of merchandise on
July 5 on account. Credit terms were 2/10, n/30. It returned $400 of the merchandise on July
9. Which of the following is one effect
when Cosmos pays its bill on July 21?
Answer:
Credit to Cash for $1,600
Question:
When credit terms of 1/15, n/60 are offered, how long is the discount period?
Answer:
15 days
Question:
Martin Company purchases $4,200 of merchandise on March 1, with credit terms of 3/10, n/30. If
Martin pays on March 11, what is the cost of this purchase?
Answer:
$4,074
Answers Latest update 2026/2027
Question:
Which of the following statements about a periodic inventory system is true?
Answer:
A.
Question:
A. Companies determine cost of goods
sold only at the end of the accounting period.
B. The periodic system provides better
control over inventories than a perpetual system.
C. The increased use of computerized
systems has increased the use of the periodic system.
D. Companies continuously maintain
detailed records of the cost of each inventory purchase and sale.
Answer:
Question:
The operating cycle of a merchandising company is ordinarily _____________ that of a service firm.
Answer:
longer than
Question:
Which of the following statements is correct?
Answer:
C.
, Question:
A. A periodic inventory system provides
better control over inventories than does a perpetual inventory system.
B. A periodic inventory system computes
cost of goods sold each time a sale occurs.
C. A perpetual inventory system provides
better control over inventories than does a periodic inventory system.
D. A perpetual inventory system computes
cost of goods sold only at the end of the accounting period.
Answer:
Question:
Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for
which it must pay the shipping charges. Which of the following is one part of the required journal
entry when Jax pays the shipping charges of $200?
Answer:
A debit to Inventory for $200
Question:
Cosmos Corporation, which uses a perpetual inventory system, purchased $2,000 of merchandise on
July 5 on account. Credit terms were 2/10, n/30. It returned $400 of the merchandise on July
9. Which of the following is one effect
when Cosmos pays its bill on July 21?
Answer:
Credit to Cash for $1,600
Question:
When credit terms of 1/15, n/60 are offered, how long is the discount period?
Answer:
15 days
Question:
Martin Company purchases $4,200 of merchandise on March 1, with credit terms of 3/10, n/30. If
Martin pays on March 11, what is the cost of this purchase?
Answer:
$4,074
