515141

1. Under the perpetual inventory system, purchases of merchandise will be debited to Merchandise Inventory.

• True

• False

2. Quarterly VAT returns should be filed on or before twenty days after the close of the quarter.

• True

• False

Answer explanation

25 days dapat

3. Special journals eliminate much of the repetitive work involve in recording routine transactions

• True

• False

4. Companies using stock cards apply the perpetual inventory system.

• True

• False

5. A purchase discount may result from buying a large enough quantity of merchandise to immediately get the discount

• True

• False

6. An item classified as inventory by one company may be classified as supplies by another company.

• True

• False

7. Under a periodic inventory system when a credit memorandum is issued by the seller for return of defective merchandise by the seller an entry is made to decrease both assets and net income.

• True

• False

8. Under the periodic inventory system, Purchases account is credited when the merchandise is taken out of the business for personal use by the owner.

• True

• False

9. Purchase Returns and Allowances is the account to be credited by Superb School and Office Supplies to record cash refund from the seller for office supplies returned due to wrong specification

• True

• False

10. Creditable Input Tax is reported in the Statement of Financial Position as Prepaid Expense

• True

• False