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ACC 556 Chapter 5 Quiz (100% Score)
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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