Multiple Questions Answers

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.
                                                Purchases                                                                           Sales
July        3                              20 units @ $12                   July        13                           25 units
                11                           20 units @ $13                                   22                           10 units
                20                           10 units @ $15                                                                  
Under the FIFO method, the cost of goods sold for each sale is:
                July 13                  July 22
 375        150
$300       $120 
325         130
305         130

4. In large companies, the independent internal verification procedure is often assigned to
 management.
computer operators.
outside CPAs.
internal auditors.