1.

Under a perpetual inventory system, acquisition of merchandise for resale is debited

to the

Answer: Inventory account

2. If a company determines cost of goods sold each time a sale occurs, it

Answer: Uses a perpetual inventory system

3. If a purchaser using a perpetual system agrees to freight terms of FOB shipping

point, then the

Answer: Inventory account will be increased

4. A buyer would record a payment within the discount period under a perpetual

inventory system by crediting

Answer: Inventory

5. Freight costs paid by a seller on merchandise sold to customers will cause an

increase

Answer: To the cost of goods sold of the seller

6. Inventory system that requires more detailed inventory records

Answer: Perpetual

7. The sales return and allowances account does not provide information to

management about

Answer: The percentage of credit sales versus cash sales

8. Cost of goods sold is determined only at the end of the accounting period in

Answer: A periodic inventory system

9. Detailed records of goods held for resale are not maintained under a

Answer: Periodic inventory system

10. In a perpetual inventory system, cost of goods sold is recorded

Answer: With each sale