Chapter 7Practice Materials.docVIP

Chapter 7—Inventories MULTIPLE CHOICE 1. Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the a. customers ledger b. creditors ledger c. inventory ledger d. merchandise inventory account ANS: C DIF: Easy OBJ: 07-01 NAT: AACSB Analytic | AICPA FN-Measurement 2. Taking a physical count of inventory a. is not necessary when a periodic inventory system is used b. is a detective control c. has no internal control relevance d. is not necessary when a perpetual inventory system is used ANS: B DIF: Easy OBJ: 07-01 NAT: AACSB Analyti