Accounting Essay

589 WordsApr 7, 20153 Pages
TRUE/FALSE. Write'T'ifthestatementistrueand'F'ifthestatementisfalse. 1)Theperiodicinventorysystemisnormallyusedforrelativelyinexpensivegoods. 1)T 2) Whenacompanyusestheperpetual inventorymethod,theinventoryaccountshouldstaycurren1 2)T atalltimes. MULTIPLECHOICE.Choosetheonealternativethatbestcompletesthestatementoranswersthequestion. 3) Inaperiodicsystem,inventorybalancesandthecostofgoodssoldforthecurrentperiodandetermined: 3) C A) onafrequentbasis. C)whena physicalinventorycountis taken. B) onthefirstdayofeach year. D)atthetimeofsale. 4) Whatisthefirststepintheaccountingcycleforamerchandisingcompany? A) Thecompanydeliversinventorytocustomers. B) Thecompanysellsinventorytocustomers,creatingaccountsreceivable. C)Thecompanybuysinventory. D)Thecompanycollectscash. 4) B TRUE/FALSE. Write'T'ifthestatementistrueand'F'ifthestatementisfalse. 5) Whenacompanyusestheperpetualinventorymethod,itshouldNOTbenecessarytoconducta 5)T physicalcountofinventory. 6) The entrytocloseSalesdiscountsandSalesreturnsandallowancesresultsinadebit toIncomE 6)T summary. 7) IfaphysicalcountofinventoryindicatesthattheInventoryaccountisoverstated,anadditional 7)T adjustingentryisrequired. 8) TheentrytocloseCostofgoodssoldresultsinadebittoIncomesummary. 8)T MULTIPLECHOICE.Choosetheonealternativethatbestcompletesthestatementoranswersthequestion. 9) Thefollowingpertainstoperiodicinventory: Onamerchandisingincomestatement,whichwould 9)C NOTbefoundunderthe headingofCostofgoodssold? A) Freight-in B)Purchases C)Supplies D)Purchasesreturnsandallowances TRUE/FALSE. Write'T'ifthestatementistrueand'F'ifthestatementisfalse. 10) Theconsistencyprinciplestatesthatabusinessshouldusethesameaccountingmethodsfrom 10)T periodtoperiod. 11) Thelower-of-cost-or-marketruledemonstratesaccountingconservatisminaction. 11)T 12)

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