Task Team of FUNdaMENTAL aCCOUNtIng School of Business. Sun Yat-sen University A Cost of goods sold B. Accounts Payabl C. Purchases D. Inventory 10. In a periodic inventory system, the entry to record the sale of merchandise on account will affect the balance of which of the followin A Cost of Goods Sold B. Accounts Payable C Inventory D Sale 11. In a periodic inventory system, which of the following accounts may be closed by debiting the Cost of goods sold? A Sales, Inventory(beginning), and gross profit. B Inventory(beginning) and Purchases C. Purchases and Inventory(ending) D Sales, Inventory(beginning), and Cost of Goods Available for Sale 12. In comparing a perpetual inventory system with a periodic inventory system, which of the following statements is not correct? A. Most large companies use perpetual inventory systems B. A periodic system does not include an inventory subsidiary ledger C. The perpetual method is easier to apply in a manual accounting system. D. Regardless of the system in use, most businesses take a physical inventory at least once a year 13. In a periodic inventory system, the cost of goods sold A. Recorded as sales transactions occur. B. Determined by a computation which is performed at year-end, after the taking of a complete physical inventory. C. Equal to the beginning inventory, plus purchases made during the period, less sales revenue for the period D Determined by subtracting the balance in the gross Profit account from the amount of net sales 14. In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows: A. Beginning inventory purchases-ending inventory B Beginning inventory purchases-net sales C Ending inventory purchases-net sales D. Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage 15. Which of the following statements about a periodic inventory system is not correct? A. These systems are used primarily by small businesses with manual accounting systemsTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University 3 A. Cost of Goods Sold. B. Accounts Payable. C. Purchases. D. Inventory. 10. In a periodic inventory system, the entry to record the sale of merchandise on account will affect the balance of which of the following accounts? A. Cost of Goods Sold. B. Accounts Payable. C. Inventory. D. Sales. 11. In a periodic inventory system, which of the following accounts may be closed by debiting the Cost of Goods Sold? A. Sales, Inventory (beginning), and gross profit. B. Inventory (beginning) and Purchases. C. Purchases and Inventory (ending). D. Sales, Inventory (beginning), and Cost of Goods Available for Sale. 12. In comparing a perpetual inventory system with a periodic inventory system, which of the following statements is not correct? A. Most large companies use perpetual inventory systems. B. A periodic system does not include an inventory subsidiary ledger. C. The perpetual method is easier to apply in a manual accounting system. D. Regardless of the system in use, most businesses take a physical inventory at least once a year. 13. In a periodic inventory system, the cost of goods sold is: A. Recorded as sales transactions occur. B. Determined by a computation which is performed at year-end, after the taking of a complete physical inventory. C. Equal to the beginning inventory, plus purchases made during the period, less sales revenue for the period. D. Determined by subtracting the balance in the Gross Profit account from the amount of net sales. 14. In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows: A. Beginning inventory + purchases - ending inventory. B. Beginning inventory + purchases - net sales. C. Ending inventory + purchases - net sales. D. Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage account. 15. Which of the following statements about a periodic inventory system is not correct? A. These systems are used primarily by small businesses with manual accounting systems