1. In a perpetual inventory system,
a. the Inventory and Cost of Goods Sold accounts are updated once a period.
b. temporary accounts, such as Purchases and Purchase Discounts, are used.
c. the availability of computer technology is generally not considered important.
d. a purchase of goods would require a debit to Inventory and a credit to either Cash or Accounts Payable.
e. no entry is made for Cost of Goods Sold expense when goods are sold to customers.
2. When goods are shipped
a. FOB shipping point, the buyer obtains legal title to the goods when the goods are received by the buyer.
b. FOB destination, the seller retains legal title to the goods until the goods reach the shipping point.
c. FOB shipping point, the buyer obtains legal title to the goods when the goods are shipped and also pays for the related delivery charges.
d. FOB destination point, the buyer obtains legal title to the goods when the goods reach the shipping point and the seller pays for the related delivery charges.
e. FOB shipping point, the seller retains legal title to the goods until the goods reach the buyer but the buyer pays for the related delivery charges.
3. When LIFO perpetual inventory costing is used, which costs are included in ending inventory and cost of goods sold? Ending Inventory Cost of goods Sold
a. Newest Oldest
b. Oldest Newest
c. Newest Average
d. Oldest Average
e. Average Average