Self Assessment Quizzes

CHAPTER 25: Section 1 Determining the Quantity of Inventories

	1.	Merchandise Inventory is typically one of the largest

		a.	asset accounts
		b.	liability accounts
		c.	revenue accounts
		d.	expense accounts

	2.	Businesses that have not automated their operation may keep their inventory records on

		a.	post-it notes
		b.	used envelopes
		c.	stock cards
		d.	stock yards

	3.	Under the perpetual inventory system every time a purchase or sale occurs, an entry is recorded in the

		a.	Merchandise Receivable account
		b.	Merchandise Payable account
		c.	Merchandise Inventory account
		d.	Merchandise Inventory Expense account

	4.	For a business to function efficiently, the quantity and cost of merchandise purchased, on hand, and sold is

		a.	kept in a safe
		b.	reviewed by accountants
		c.	tracked by an inventory control system
		d.	tracked by lower level management

	5.	Management can obtain the quantity of inventory on hand and cost of any item at any point in time using a

		a.	perpetual inventory system
		b.	telepathic viewer
		c.	time-line system
		d.	overall inventory tracking system

	6.	Many systems use electronic cash registers, known as

		a.	point-of-sale terminals
		b.	ECRs
		c.	computer terminals
		d.	online terminals

	7.	An inventory system in which a constant, up-to-date record of merchandise on hand is kept is called

		a.	market value
		b.	point-of-sale system
		c.	periodic inventory system
		d.	perpetual inventory system

	8.	When inventory records are updated only after a physical count of merchandise on hand is made, the inventory system used is the

		a.	perpetual inventory system
		b.	periodic inventory system
		c.	specific inventory system
		d.	physical inventory system