Chapter 5 Quiz
Question 1
An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.
Question 2
The terms 2 / 10, net / 30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period.
Question 3
Sales allowances and Sales discounts are both designed to encourage customers to pay their accounts promptly.
Question 4 Freight-out appears as an operating expense in the income statement. Question 5
With the periodic inventory system, goods available for sale must be calculated before cost of goods sold.
Question 6 Merchandising companies that sell to retailers are known as Question 7 The primary source of revenue for a wholesaler is Question 8 Which of the following is a true statement about inventory systems? Question 9