Accounting- Chapter 20 True/False

true

a merchandise inventory conducted by counting, weighting, or measuring items of merchandise on hand is also called physical inventory

true

a merchandise inventory evaluated at the end of a fiscal period is known as periodic inventory

true

a minimum inventory balance is the amount of merchandise that will typically last until ordered merchandise can be recieved by vendors

false

a perpetual inventory system provides day to day information about the quality of merchandise on hand

true

many merchandising businesses use a POS terminal to read UPC codes on products and update the stock ledger

true

merchandise inventory on hand is typically the largest current asset of a merchandising business

false

net income of a business can be decreased by maintaining a merchandise inventory that is larger than needed

true

the gross profit method makes it possible to prepare monthly income statements without taking a physical inventory

false

the only financial statement on which the value of merchandise on hand is reported is the income statement

false

first in first out is a method used to determine the quantity of each type of merchandise on hand