10.Which of the following statement(s) is (are) true about the perpetual system. A. Physical count is unnecessary for the perpetual system. B. The inventory account is used to record purchase returns and discounts. C. The system uses individual subsidiary ledgers for each inventory items. D. A formula is needed to compute for the cost of goods sold. E. The cost of sales account is debited at cost  when goods are sold.     A, B and C B, C and E C, D and E D, E and C

From page 5-2 of the VLN, which of the following accounts are subtracted from sales to compute Net sales? Allowance for uncollectible accounts Deferred revenue Sales discounts Sales returns and sales allowances Accumulated depreciation Trade discount

Which of the following is a difference between the periodic inventory system and the perpetual inventory system? a. The Merchandise Inventory account is used under the perpetual inventory system but not under the periodic inventory system. Ob. The Purchases account is used under the periodic inventory system but not under the perpetual inventory system. c. The Merchandise Inventory account is used under the periodic inventory system but not under the perpetual inventory system. Od. The Purchases account is used under the perpetual inventory system but not under the periodic inventory system.

The account used to adjust the perpetual inventory records when a difference exists between the physical count and the amount in the perpetual inventory records is called a. Inventory Short and Over. b. Estimated Returns Inventory. c. Inventory Shrinkage. d. Merchandise Inventory