Ch. 3.indicate

A merchandising company generates revenue primarily by selling goods to customers.

True

A physical count of inventory at the end of each accounting period is necessary for the periodic inventory system, as well as for the perpetual inventory system.

True

FOB destination means that seller's responsibility ends at destination.

True

The freight terms FOB shipping point increase the cost of inventory to the buyer.

True

The perpetual inventory method recognizes inventory transactions as they occur.

True

With a periodic inventory system, cost of goods sold is not determined until the end of the accounting period.

True

A periodic inventory system requires more detailed record keeping than a perpetual inventory system.

False

FOB shipping point means that purchaser's responsibility ends at shipping point.

False

Product cost include all costs associated with the sale of products.

False

Retail companies are firms that sell goods to other businesses.

False

The periodic inventory method recognizes sales revenue at the end of the accounting period.

False

The supply of good accumulated to deliver when sales are made is called supplies.

False

The term FOB means that goods are shipped free of charge to buyer and seller.

False

Walmart is an example of a wholesale company.

False

When the seller of merchandise records freight under the terms FOB shipping point, the seller records an expense.

False