Task Team of FUNdaMENTAL aCCOUNtIng School of Business. Sun Yat-sen University accoun D One entry updates the subsidiary ledger and the other updates the general ledger. 4. In a perpetual inventory system, recording a sale on account involves crediting which of the following accounts? A Only Sales B. Sales and Inventory C. Sales and Cost of Goods Sold D Sales, Inventory, and Cost of Goods Sold. 5. In a periodic inventory system, recording a sale on account involves crediting which of the following accounts? A Only Sales B. Sales and Inventory C Sales and Cost of Goods Sold D. Sales, Inventory, and Cost of Goods Sold. 6. The specific identification method is more appropriate than a flow assumption: A. For a large inventory of identical low-priced items B. If each item in the inventory is unique C If purchase costs are rising D. If purchase costs are falling 7. When the liFo costing method is in use the seller A Must sell the most recently acquired units first B. Must sell the oldest unit in inventory first C. Assumes that the most recently acquired units are sold first D. Assumes that the oldest units in inventory are sold first 8. Which of the following methods of measuring the cost of goods sold most closely parallels the actual physical flow of the merchandise? A LIFO B FIFO C. Average cost D. Specific identification. 9. The only method of pricing inventory in which all items are assigned the same unit cost is A LIFO B FIFO C. Average D. Specific identification. 10. Which of the following results in the inventory being stated at the most current acquisition costs? A. Specific identificationTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University 2 account. D. One entry updates the subsidiary ledger and the other updates the general ledger. 4. In a perpetual inventory system, recording a sale on account involves crediting which of the following accounts? A. Only Sales. B. Sales and Inventory. C. Sales and Cost of Goods Sold. D. Sales, Inventory, and Cost of Goods Sold. 5. In a periodic inventory system, recording a sale on account involves crediting which of the following accounts? A. Only Sales. B. Sales and Inventory. C. Sales and Cost of Goods Sold. D. Sales, Inventory, and Cost of Goods Sold. 6. The specific identification method is more appropriate than a flow assumption: A. For a large inventory of identical low-priced items. B. If each item in the inventory is unique. C. If purchase costs are rising. D. If purchase costs are falling. 7. When the LIFO costing method is in use, the seller: A. Must sell the most recently acquired units first. B. Must sell the oldest unit in inventory first. C. Assumes that the most recently acquired units are sold first. D. Assumes that the oldest units in inventory are sold first. 8. Which of the following methods of measuring the cost of goods sold most closely parallels the actual physical flow of the merchandise? A. LIFO. B. FIFO. C. Average cost. D. Specific identification. 9. The only method of pricing inventory in which all items are assigned the same unit cost is: A. LIFO. B. FIFO. C. Average cost. D. Specific identification. 10. Which of the following results in the inventory being stated at the most current acquisition costs? A. Specific identification