The factor which determines whether or not goods should be included in a physical count of inventory is

The factor which determines whether or not goods should be included in a physical count of inventory is

management's judgment.

legal title.

physical possession.

payment status.

What is an advantage of using the multiple$-$step income statement?

Net income will be higher than net income computed using the single$-$step income statement.

It is easier to prepare than the single$-$step income statement.

Gross profit is not a separate item.

It highlights the components of net income.

Interest expense would be classified on a multiple$-$step income statement under the heading

Other expenses and losses.

Cost of goods sold.

Other revenues and gains.

Operating expenses.

Sales revenues are usually considered earned when

goods have been transferred from the seller to the buyer.

cash is received from credit sales.

adjusting entries are made.

an order is received.

The primary difference between a periodic and perpetual inventory system is that a periodic system

keeps a record showing the inventory on hand at all times.

determines the inventory on hand only at the end of the accounting period.

provides better control over inventories.

records the cost of the sale on the date the sale is made.

Net income will result if gross profit exceeds

cost of goods sold plus operating expenses.

cost of goods sold.

operating expenses.

purchases.