ENT 3451 Test 2
Study online at https://quizlet.com/_80j4ew
1. Which account does a merchandiser use that a service Cost of goods sold
company does not use?
2. A perpetual inventory system Keeps inventory continu-
ously updated
3. Purchase of merchandise on account Debit Merchandise inven-
tory and credit accounts
payable
4. Gross profit net sales - cost of goods
sold
5. FOB shipping point refers to the situation in which title Buyer
to goods rests with the
6. Using the perpetual inventory system, which account Merchandise inventory
is used to record the payment fo freight for inventory
purchased
7. Gross Profit Percentage (net sales - COGS) / net
sales
8. Which principle or concept states that a business's Disclosure principle
financial statements must report enough information
for outsiders to make knowledgeable decisions about
the company?
9. Which inventory costing method assigns to Cost of Last-in, first-out (LIFO)
Goods Sold the most recent purchases incurred during
the period
10. Which of the following valuation methods should be Specific identification
used to unique items?
1/2
Study online at https://quizlet.com/_80j4ew
1. Which account does a merchandiser use that a service Cost of goods sold
company does not use?
2. A perpetual inventory system Keeps inventory continu-
ously updated
3. Purchase of merchandise on account Debit Merchandise inven-
tory and credit accounts
payable
4. Gross profit net sales - cost of goods
sold
5. FOB shipping point refers to the situation in which title Buyer
to goods rests with the
6. Using the perpetual inventory system, which account Merchandise inventory
is used to record the payment fo freight for inventory
purchased
7. Gross Profit Percentage (net sales - COGS) / net
sales
8. Which principle or concept states that a business's Disclosure principle
financial statements must report enough information
for outsiders to make knowledgeable decisions about
the company?
9. Which inventory costing method assigns to Cost of Last-in, first-out (LIFO)
Goods Sold the most recent purchases incurred during
the period
10. Which of the following valuation methods should be Specific identification
used to unique items?
1/2
