Under the perpetual inventory method, merchandise inventory is assigned to Cost of Goods Sold when a company:
A) receives the inventory.
B) purchases the inventory.
C) sells the inventory.
D) makes payment on the inventory.
Answer: C
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Indicate whether the statement is true or false
Which of the following, if true, most strongly supports beginning a thorough performance appraisal of the Foothill locations by reassessing performance criteria?
A) Corporate practice has always been to reassess performance criteria on an annual basis. B) The performance goals used by Foothill are quite different from those used by Cashcorp. C) The Cashcorp CEO would like to see the new Foothill locations increase their assets by at least 15 percent. D) The two best performers among the Foothill branches are the most recently opened, and their employees have the fewest years of service with the firm. E) Employees at Foothill have been with the firm an average of 12 years.