1. MC.07-17

A retail firm would normally use an inventory account titled finished goods inventory goods in process inventory raw materials inventory merchandise inventory
2. MC.07-18

A manufacturing company typically has how many inventory accounts? 1 3 2 4
3. MC.07-19

A manufacturing firm would not normally have an account titled raw materials inventory finished goods inventory merchandise inventory goods in process inventory
4. MC.07-20

Which of the following is included in the work in process account? cost of raw materials used in production manufacturing overhead direct labor cost All of these answer choices are included in the work in process account.
5. MC.07-22

A perpetual inventory system keeps a continuous record of the physical quantities of inventory on hand does not maintain a continuous record of the cost of inventory on hand does not maintain a continuous record of the physical quantities of inventory on hand only records the inventory on hand at the end of the year physical count
6. MC.07-23

Which of the following are characteristics of a perpetual inventory system? Management knows how much inventory is on hand at all times. The computer tracks inventory upon a sale and the cost of goods and inventory are immediately updated. Purchases of inventory are recorded to the inventory account. All of these answer choices are characteristics of a perpetual inventory system.
7. MC.07-25

Which of the following is not an advantage of a perpetual inventory system? maintains up-to-date inventory and cost of goods sold balances assists in the prevention of stock outs provides evidence of inventory shrinkage requires less data processing effort than periodic systems
8. MC.07-26

Which of the following is a characteristic of a periodic inventory system?