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TRUE or FALSE 1

Marketing

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TRUE or FALSE

1. When a seller offers a 2/10, n/30 sales discount, the buyer should take the discount only if the buyer has the cash or can borrow money at less than 2% annual interest to pay for it.

2. A business using the perpetual inventory system does not need to take a physical inventory count because inventory is adjusted with every purchase and sales of merchandise.

3. If the Day's sales in inventory ratio (Ending Inventory/Cost of Good Sold) x 365) was 65 days at 12/31/2016 and 70 days at 12/31/2015, the trend is favorable.

4. LIFO will result in both lower net income and higher ending inventory than FIFO.