41.There is no difference between the recording of cash sales and the recording of MasterCard or VISA sales.
a.True
b.False
42.When companies use a perpetual inventory system, the recording of the purchase of inventory will include a debit toPurchases.
a.True
b.False
43.Most companies will
nottake a purchase discount, because 1% or 2% discounts are insignificant.
a.True
b.False
44.The seller may prepay the freight costs even though the terms are FOB shipping point.
a.True
b.False
45.The seller records the sales tax as part of the sales amount.
a.True
b.False
46.A business using the perpetual inventory system, with its detailed subsidiary records, does
notneed to take aphysical inventory.
a.True
b.False
47.Title to merchandise shipped FOB shipping point passes to the buyer upon delivery of the merchandise to thebuyer's place of business.
a.True
b.False
48.Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.
a.True
b.False
49.Because many companies use computerized accounting systems, periodic inventory is widely used.
a.True
b.False
50.If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the generalledger.
a.True
b.False