In a perpetual inventory system, which account will the seller credit when merchandise is returned by a customerAccounts Receivable and Cost of goods soldMarsh Inc. paid for freight costs on merchandise it shipped to a customer. In what account will March record this cost in a perpetual inventory systemfreight-out accountWhich of the following statements about a periodic inventory system is true?companies determine cost goods sold only at the end of the accounting periodThe multiple-step income statement for a merchandising company shows each of these features exceptan investing activities sectioncost of goods available for sale consist of two elements: beginning inventory andcost of goods purchasedConsiderations that affect the selections of an inventory costing method do not includeperpetual versus periodic inventory systemThe lower-of-cost-or-net realizable value rule for inventory is an example of the application ofthe conservatism conventionWhich of these would cause inventory turnover to increase the most?decreasing the amount of inventor on hand and increasing salesIn a perpetual inventory systemFIFO cost of goods sold will be the same as in a periodic inventory systemThe principles of internal control do not includemanagement responsibilityWhich of the following was not a result of the Sarbanes-Oxley Act?Companies must file financial statements with the Internal Revenue ServicePermitting only designated personnel such as cashiers to handle cash receipts is an application of the principle ofestablishment of responsibilityWhich statement correctly describes the reposting of cash?cash is listed first in the current assets sectionIn a bank reconciliation, deposits in transit areadded to the bank balanceThe reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor isbank service chargeWhich of the following items in a cash drawer at November 30 is not cash?an NSF checkWhich of the following is not one of the sections of a cash budget?cash from operations section
