Reference no: EM132740083

Problem 1: With a perpetual inventory system the return of inventory to a supplier is recorded in the purchaser's books by crediting

a. Purchases.

b. Purchase Returns.

c. Purchase Allowance.

d. Inventory

Problem 2: Which of these is a true statement about inventory systems?

a. Periodic inventory systems require more detailed inventory records.

b. Perpetual inventory systems require more detailed inventory records.

c. A periodic system requires cost of sales be determined after each sale.

d. A perpetual system determines cost of sales only at the end of the accounting period.

Problem 3: Under the perpetual inventory system the Inventory account can be used to record all of these transactions, except

a. the purchase of goods on credit.

b. the return of goods purchased.

c. payment of suppliers within the discount period.

d. the inventory account can be used to record all the above transactions.