Sales Discount is used when calculating Net Purchases. 84) Ending merchandise inventory i
Sales Discount is used when calculating Net Purchases.
84) Ending merchandise inventory is subtracted when calculating the cost of goods sold.
85) The ending inventory figure is shown on the balance sheet.
86) The income statement shows beginning inventory as a part of cost of goods sold.
87) Unearned Rent is one type of unearned revenue.
88) An adjustment to Prepaid Insurance would not normally be made until the end of two years.
89) The category Other Income can be used to report rental income.
90) Mortgage Payable is a liability account.
91) A perpetual inventory system is an inventory system that keeps continual track of inventory. It is used by companies with a high unit cost and a low volume.