Reference no: EM132585060

Question 1. Fresh Foods Company purchased canned goods at invoice price of RM4,000, and terms of 2/10, n/30. Half of the goods were wrongly labeled and were returned to supplier. If Fresh Foods Company pays the remaining amount of invoice within the discount period, the amount paid should be:

A. RM1,800.

B. RM1,960.

C. RM3,920.

D. RM4,000.

Question 2. In comparing a perpetual inventory system with a periodic inventory system, which of the following statements is not correct?

A. The perpetual inventory system is easier to apply in a manual accounting system.

B. Most large companies use the perpetual inventory system.

C. Regardless of the system in use, most businesses do physical counting of inventory/stock-take at least once a year.

D. A periodic inventory system requires a Purchase account to record purchases of inventory.

Question 3. The cost of delivering inventory to customers is:

A. Part of cost of goods sold.

B. Used in the calculation of net sales.

C. Part of cost of inventory.

D. An operating expense.