Home / Questions / Figuring adjustments for merchandise inventory, unearned rent, supplies used, insurance e
Figuring adjustments for merchandise inventory, unearned rent, supplies used, insurance expired, amortization expense, and salaries accrued.
1) What inventory method is used when the inventory balance is updated only at the end of the accounting period?
A) Periodic
B) Perpetual
C) Net Income
D) Cost of Goods Sold
2) A characteristic of a perpetual inventory method is that
A) it keeps continual track of inventory.
B) it records units on hand at the beginning of the period.
C) it records units sold immediately.
D) All of these answers are correct.
3) When using a periodic inventory method, what account is increased when you buy merchandise inventory?
A) Cost of Goods Sold
B) Beginning Inventory
C) Ending Inventory
D) Purchases
4) Cost of Goods Sold equals:
A) Beginning Inventory + Net Purchases + Freight-in + Ending Inventory.
B) Beginning Inventory - Net Purchases - Freight-in + Ending Inventory.
C) Beginning Inventory + Net Purchases + Freight-in - Ending Inventory.
D) Beginning Inventory - Net Purchases + Freight-in + Ending Inventory.
5) Net Income equals:
A) Net Sales - Cost of goods sold - Operating expenses.
B) Gross Profit - Operating expenses.
C) Sales - Sales Returns & Allowances - Sales Discount - Cost of goods sold - Operating Expenses.
D) All of the above are correct.
6) Ending inventory
A) increases Cost of Goods Sold.
B) decreases Cost of Goods Sold.
C) does not affect Cost of Goods Sold.
D) increases liabilities.
7) If gross profit exceeds operating expenses, the company
A) had a net loss.
B) broke even.
C) had a net income.
D) Not enough information given
8) Beginning inventory was $4,000, purchases totaled $12,000 and sales were $10,000. What is the ending inventory?
A) $2,000
B) $4,000
C) $6,000
D) $8,000
9) If $4,000 was the beginning inventory, purchases were $10,000 and sales were $7,000. How much was ending inventory last accounting period?
A) $7,000
B) $4,000
C) $0
D) $3,000
10) The first entry to adjust Merchandise Inventory includes
A) a debit to Merchandise Inventory.
B) a credit to Merchandise Inventory.
C) a credit to Income Summary.
D) None of these are correct.
Dec 06 2019 View more View Less
Which of the following is a characteristic of products produced by multinational corporations?a) Products are developed to meet unique market requirements whenever possi...
May 10 2021How many moles (of molecules or formula units) are in each sample?29.3 kg Fe (NO32Express your answer to three significant figures and include the appropriate units.0.383...
Jun 28 2021Ball Industries is considering acquiring the Keyes Corporation in a stock-for-stock exchange. Selected financial data on the two companies follow:exchange, how much capit...
Mar 31 2020The aggregate demand curve slopes downward indicating that:a. an increase in the general price level will increase the aggregate quantity of goods and services demanded.b...
Jun 07 2021In this solution you will learn about the macro environment forces that impact businesses and how can they influence business strategy. Macro environmental forces can als...
Nov 26 2019Find the surface area of the torus generated by revolving the circle given by about the line
Jul 17 2021Chapter 1 Understand Yourself feature gives you the chance to self-assess your global mindset Global mindset reflects how well we influence people, groups, and organizati...
Apr 28 2020Loyalty Program SuccessAre loyalty programs more likely to be successful for certain kinds of products and services than for others?
Mar 19 2020Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent.Project Y Time: 0 1 2 3 4Cash flow â$8,400 $3,430 $4,260 $1,600 $380
May 13 2021On your summer study abroad program in Europe you stay an extra two weeks to travel from Paris to Moscow. You leave Paris with 3400 euros (euro or EUR) in your belt pack....
Apr 27 2021