1.The inventory systems that uses the merchandise inventory account as an active account is called?
a. periodic system.
b. perpetual system
c LIFO system
d. FIFO system
2. Cost of goods sold is shown on the?
a. balance sheet as an assets.
b. income statement before gross profit.
c. statment of retained earnings.
d. income statement after gross profit.
3. Ignoring a write-off- of inventory that will not affect the financial statements to users of the information is an example of.
a. conservatism
b. consistency
c. materiality
d. entity