81 which of the following factors would suggest the use of a perpetual inventory sys 4295387
81.Which of the following factors would suggest the use of a perpetual inventory system?
A.A small company.
B.Inventory items with a high per-unit cost.
C.A desire to minimize record-keeping requirements.
D.Only annual reporting is required.
82.Which of the following companies would be more likely to use a periodic inventory system?
B.1st Bank of New York.
D.A newspaper stand.
83.Which of the following companies would be more likely to use a perpetual inventory system?
C.James Dean, CPA.
D.A manufacturer of custom sailboats.
84.Which of the following factors would suggest the use of a periodic inventory system?
A.A small company.
B.A high volume of sales and a manual accounting system.
C.Neither a small company nor a high volume of sales and a manual accounting system.
D.Both a small company and a high volume of sales and a manual accounting system.
85.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.
86.Periodic inventory systems are used primarily by:
A.Small businesses with manual accounting systems.
B.Large manufacturing companies.
C.Small businesses that sell a low volume of high-priced items.
D.Companies that sell a high volume of low-priced items and record sales transactions on point-of-sale terminals.
87.Which account listed below is classified as a contra-revenue account?
A.Cost of Goods Sold.
88.The credit term 2/10, n/30 means:
A.That after 10 days 2% interest is charged.
B.That there is a 10% discount if payment is received within 30 days.
C.That there is a 2% discount if payment is received within 10 days, otherwise, full payment is due within 30 days.
D.There is a 10% discount if paid immediately and 2% if paid within 30 days.
89.Sales discounts and allowances:
A.When properly recorded will reduce net profit.
B.When properly recorded will increase net profit.
C.Will not affect net profit.
D.Are always immaterial and need not be recorded.
90.Which of the following credit terms is the most advantageous to the purchaser of merchandise?