Which of the following accounts is not included in inventory? a. Raw material b. Team c. Finished goods d. Materials 2. Why is inventory included in the net income determination? a. To determine the cost of goods sold b. To determine sales income c. To determine the return of merchandise d. Inventory is not included in the determination of net income 3. Which of the following is a feature of the perpetual inventory system? a. Inventory purchases are debited to the Purchasing account.
Which of the following accounts is not included in inventory? a. Raw material b. Team c. Finished goods d. Materials 2. Why is inventory included in the net income determination? a. To determine the cost of goods sold b. To determine sales income c. To determine the return of merchandise d. Inventory is not included in the determination of net income 3. Which of the following is a feature of the perpetual inventory system? a. Inventory purchases are debited to the Purchasing account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Which of the following accounts is not included in inventory?
a. Raw material
b. Team
c. Finished goods
d. Materials
2. Why is inventory included in the net income determination?
a. To determine the cost of goods sold
b. To determine sales income
c. To determine the return of merchandise
d. Inventory is not included in the determination of net income
3. Which of the following is a feature of the perpetual inventory system?
a. Inventory purchases are debited to the Purchasing account.
b. Inventory records are not kept for every item.
c. The cost of what is sold is recorded in each sale.
d. The cost of goods sold is determined as the quantity of purchases minus the change in inventory.
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