What is a perpetual inventory system?

Merchandising

Quiz
•
Business
•
9th - 12th Grade
•
Easy
Michael Featherston
Used 13+ times
FREE Resource
27 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does a perpetual inventory system differ from a periodic inventory system?
A perpetual inventory system updates inventory records continuously, while a periodic system updates them at specific intervals.
A perpetual inventory system requires physical counts, while a periodic system does not.
A perpetual inventory system is used only for large businesses, while a periodic system is for small businesses.
A perpetual inventory system is less accurate than a periodic system.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a benefit of using a perpetual inventory system?
It reduces the need for real-time data.
It eliminates the need for inventory management software.
It provides accurate inventory levels at any given time.
It requires less initial setup compared to other systems.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What type of balance sheet account is "Sales Returns and Allowances"
Contra [revenue] account
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When giving someone store credit, how would you journal this?
Debit Sales Returns and Allowance, Credit Inventory
Debit Sales Returns and Allowance, Credit AP
Debit Cash, Credit Store Credit
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary purpose of a contra revenue account like "Sales Returns and Allowances"?
To increase total sales revenue
To offset sales revenue and reflect returns or allowances
To record additional sales
To track inventory levels
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following transactions would require a journal entry in a perpetual inventory system?
Monthly inventory count
Sale of merchandise
Annual financial audit
Employee salary payment
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