For most merchandising businesses, merchandise inventory is the largest asset.

If ending inventory is understated, total assets on the balance sheet will be overstated.

The average sales turnover ratio tells a business the number of times the average amount of merchandise inventory is sold during a specific period of time.

If prices are rising, the reported net income of business will be highest if it uses the FIFO inventory costing method.

In a voucher system, the check register replaces check stubs.

All stock records for all merchandise on hand are contained in a stock ledger.

When recording an entry in a voucher register, only the date, the account debited, and the voucher number are entered.

The retail method of estimating inventory uses a percentage based on both cost and retail prices.

The Bank columns in the check register are not posted to any ledger.

The weighted average costing method uses the lower of the inventory prices to calculate the cost of ending merchandise inventory.

A business counts as part of its inventory all the goods that it legally owns.

When a voucher is canceled, the Paid column of the voucher register is marked "Canceled."

When a voucher is issued for purchases of merchandise, it is recorded in the voucher register, and a notation is made in the check register indicating the date due and the amount of any discount.

The first-in, first-out inventory method uses the average cost of beginning inventory plus merchandise purchased during the fiscal period to calculate the cost of merchandise sold.

Two amounts are needed to apply the lower of cost or market method: (1) the cost of the inventory using one of the inventory costing methods, and (2) the current market price

of the inventory.

In a voucher register, every entry includes a credit to Vouchers Payable.

A perpetual inventory provides day-to-day records about the quantity of merchandise on hand.

The person or business who receives goods on consignment is called the consignment buyer.

When a voucher with terms of 2/10, n/30 is canceled because of a purchase return or allowance, the payment date of the new voucher is 10 days from the date of the

purchase return.

In a voucher system, only a few people are able to authorize a voucher and approve cash payments. This system safeguards cash.

In a voucher system, a voucher replaces invoices for all merchandise purchased.

The last-in, first-out inventory costing method uses the price of merchandise purchased last to calculate the cost of merchandise sold first.

When a purchase return or allowance is granted, the details on the voucher are changed to reflect the amount of the return or allowance. In addition, the signature to approve the voucher is crossed out, and the new authorization signature is written in.

Unpaid vouchers are filed by payment date to ensure that payment is made within the discount period.

During a period of decreasing prices, the inventory method that results in the highest total inventory cost is the

The general ledger account title used in place of Accounts Payable when using a voucher system is

For goods held on consignment, the consignee

The value of ending inventory using the weighted-average method with total purchases of $1,000.00 for 100 units and ending inventory of 12 units is

All of the following are procedures used to control and safeguard cash, EXCEPT

Vouchers Payable normally

The ending inventory valuation using fifo is $22,000.00 and using lifo is $19,700.00. The ending inventory valuation using the weighted-average method must be

Of the merchandise inventory turnover ratios given, the best is

In a voucher system, a voucher is used

A merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand is a

Checks are recorded in the check register in

In a voucher system, the entry to record supplies purchased on account is recorded in the

The paid and unpaid vouchers files eliminate the need to post to the

Vouchers needing to be paid are filed in the unpaid vouchers file according to the

Using the gross profit method to estimate inventory, the estimated gross profit equals

The value of ending inventory using the fifo method for merchandise that has a beginning inventory of 20 units at $5.00 each, purchases during the year of 10 units at $6.00 each, and ending inventory of 12 units is

Comparing inventory costing methods in times of rising prices, the LIFO method will result in the

Businesses that uses a periodic or a perpetual inventory usually take a periodic inventory once each

A check register is similar to and replaces a

Which account record lists the number of units on hand, the unit price of the item, and the item’s total cost?

Use the following information to answer questions 46 through 49.

July 6. Zeus Body Building, Inc., issued a check to Olympic Fitness Company in payment of Voucher 229. The

voucher was issued on June 30 for a purchase of merchandise, $400.00. The terms were 2/10, n/30.

The account debited in the check register is

July 6. Zeus Body Building, Inc., issued a check to Olympic Fitness Company in payment of Voucher 229. The

voucher was issued on June 30 for a purchase of merchandise, $400.00. The terms were 2/10, n/30.

The accounts credited in the check register are

July 6. Zeus Body Building, Inc., issued a check to Olympic Fitness Company in payment of Voucher 229. The

voucher was issued on June 30 for a purchase of merchandise, $400.00. The terms were 2/10, n/30.

If the bank balance before this transaction was $20,200.00. The balance immediately after this transaction will be

July 6. Zeus Body Building, Inc., issued a check to Olympic Fitness Company in payment of Voucher 229. The

voucher was issued on June 30 for a purchase of merchandise, $400.00. The terms were 2/10, n/30.

The check number is written on all of the following EXCEPT

Use the information above to answer questions 50 through 52. The following information for Crossroads Company is available on December 31 of the current year.

Using the gross profit method, ending inventory is estimated to be

Use the information above to answer questions 50 through 52. The following information for Crossroads Company is available on December 31 of the current year.

Using the retail method, ending inventory is estimated to be

Use the information above to answer questions 50 through 52. The following information for Crossroads Company is available on December 31 of the current year.

The percentage used to estimate the ending inventory under the retail method is

Use the information to answer questions 53 & 54. The following information for Garcia Corporation is available for the current year.

What is the average merchandise inventory for the current year?

Use the information to answer questions 53 & 54. The following information for Garcia Corporation is available for the current year.

What is the merchandise inventory turnover ratio?