Multiple choice

1.-Costs included in the Merchandise Inventory account can include: 

A)-Invoice price minus any discount. 

B)-Freight-in. 

C)-Storage. 

D)-Insurance. 

E)-All of the above. 

2.-The inventory turnover ratio is calculated as: 

A)-Cost of goods sold divided by average merchandise inventory. 

B)-Sales divided by cost of goods sold. 

C)-Ending inventory divided by cost of goods sold. 

D)-Cost of goods sold divided by ending inventory. 

E)-Cost of goods sold divided by ending inventory times 365. 

3.-Source documents: 

A)-Are input devices. 

B)-Provide the basic information processed by an accounting system. 

C)-Cannot be electronic files. 

D)-Store processed information for future use. 

E)-All of the above. 

4.-A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n): 

A)-Controlling account. 

B)-Accounts receivable ledger. 

C)-Accounts payable ledger. 

D)-General ledger. 

E)-Special journal.