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1) The main difference between perpetual and periodic inventory systems is the timing of the allocation of costs between inventory and cost of goods sold. 2) LIFO periodic and LIFO perpetual always produce the same dollar amounts for ending inventory. 3) FIFO periodic and FIFO perpetual always produce the same dollar amounts for cost of goods sold. 4) Cost of goods on consignment is included in the consignee's inventory until sold. 5) Inventory costing methods are merely means by which costs are allocated between ending inventory and cost of goods sold. 6) In a perpetual inventory system, which of the following is recorded at the time of the sale? A) Sales revenue only. B) Both sales revenue and cost of goods sold. C) Cost of goods sold only. D) Neither sales revenue or cost of goods sold. 7) One difference between periodic and perpetual inventory systems is: A) Cost of goods sold is not recorded under a perpetual system until the end of the period. B) Cost of goods sold is not recorded under a periodic system until the end of the period. C) Cost of goods sold is always significantly higher under a perpetual system. D) Cost of goods sold is always significantly higher under a periodic system. 8) Purchases equal the invoice amount: A) Plus freight-in, plus discounts lost. B) Less purchase returns, plus purchase allowances. C) Plus freight-in, less purchase discounts. DY Dlue discounte lece nurchsee returne

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