The merchandise turnover ratio is used to measure profitability

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The merchandise turnover ratio is used to measure profitability. true or false

Physical counts of inventory

• Are not necessary under the perpetual system
• Are necessary to adjust for shrinkage
• Should be taken at least once a month
• Are necessary to adjust for shrinkage and should be taken at least once a month
• Are not necessary under the perpetual system and should be taken at least once a month

The full disclosure principle

Multiple Choice

• Requires that when a change in inventory cost flow assumption is made, the notes to the statements report the type of change
• Requires that when a change in inventory cost flow assumption is made, the notes to the statements report the justification for the change
• Requires that any change in net income due to changes in the inventory cost assumption be disclosed
• Does not require a company to use one cost flow assumption exclusively
• All of the above