Multiple choice

1. The individual amounts in the sales journal are posted to the accounts receivable subsidiary ledger 

yearly. 

daily. 

weekly. 

monthly.

2. In which journal would a cash purchase of merchandise inventory be recorded?

 Purchase journal 

General journal 

Cash payments journal 

None of these.

3. During July, the following purchases and sales were made by James Company. There was no beginning inventory. James Company uses a perpetual inventory system.

PurchasesSales

July320 units @ $12July1325 units

1120 units @ $132210 units

2010 units @ $15

Under the FIFO method, the cost of goods sold for each sale is:

July 13July 22

 375150 

$300 $120  

325130 

305130

4. In large companies, the independent internal verification procedure is often assigned to

 management. 

computer operators. 

outside CPAs. 

internal auditors.