QUIZ 23 MERCHANDISING

Request edit access

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

(Optional) Last name, First name

(Optional) Name of School

What is the primary difference between perpetual and periodic inventory systems?

1 point

Frequency of physical counts.

Timing of inventory updates.

Treatment of cost of goods sold.

Method of tracking sales revenue.

Clear selection

Under a perpetual inventory system, inventory shrinkage is detected by:

1 point

Comparing book inventory to physical counts.

Regular financial audits.

Adjusting cost of goods sold periodically.

Recording every purchase in the purchases account.

Clear selection

What is the journal entry for a sale in a perpetual inventory system?

1 point

Debit Sales Revenue, Credit Inventory

Debit Accounts Receivable, Credit Inventory

Debit Cost of Goods Sold, Credit Inventory

Debit Purchases, Credit Sales Revenue

Clear selection

Which of the following best describes perpetual inventory?

1 point

Inventory records are updated after every transaction.

Inventory levels are adjusted once every quarter.

Inventory counts are taken annually for accuracy.

Inventory purchases are grouped into batches.

Clear selection

What kind of inventory is ideal for tracking with a perpetual system?

1 point

Non-perishable goods only

High-value, low-volume items

Bulk commodities

All inventory types

Clear selection

When inventory is purchased under a perpetual system, what is the journal entry?

1 point

Debit Purchases, Credit Accounts Payable

Debit Inventory, Credit Sales Revenue

Debit Inventory, Credit Accounts Payable

Debit Purchases, Credit Cash

Clear selection

What is the purpose of using perpetual inventory systems?

1 point

To record inventory levels periodically.

To streamline accounting for cost of goods sold.

To manually count inventory during every transaction.

To estimate inventory based on periodic analysis.

Clear selection

How does perpetual inventory ensure accuracy?

1 point

By conducting frequent physical inventory counts.

Through automatic updates for every inventory movement.

By tracking sales in the purchases account.

Using manual input for all transactions.

Clear selection

What role does technology play in perpetual inventory systems?

1 point

Simplifies the process with automated tracking.

Eliminates the need for inventory counts.

Tracks inventory based on quarterly estimates.

Reduces the need for real-time updates.

Clear selection

Why might small businesses avoid a perpetual inventory system?

1 point

Inaccurate record-keeping methods.

Lack of inventory tracking needs.

High setup and maintenance costs.

Reliance on manual tracking systems.

Clear selection

Clear form

Never submit passwords through Google Forms.

This content is neither created nor endorsed by Google. - Terms of Service - Privacy Policy

Does this form look suspicious? Report

Forms