Accounting ch. 20 True or false
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the cost of merchandise sold can be calculated by subtracting the cost of merchandise available for sale from the cost of ending inventory
False
the gross profit method of estimating inventory makes it possible to prepare monthly income statement without taking a physical inventory
True
FIFO is a method used to determine the quantity of each type of merchandise on hand
false
a merchandise inventory evaluated at the end of a fiscal period is known as Perpetual inventory
false
businesses frequently establish their fiscal year to end when inventory is at a minimum
true
a merchandise inventory that is larger than needed may decrease net income
True
a merchandise inventory that is smaller than needed May decrease net income
True