The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

a. Weighted average inventory method.
b. First-in, first-out method.
c. Last-in, first-out method.
d. Specific identification method.
e. Retail inventory method.



Answer: B

Costs included in the Merchandise Inventory account can include:

Costs included in the Merchandise Inventory account can include:

a. Invoice price minus any discount, Transportation-in, Storage, Insurance
b. Invoice price plus any discount, Transportation-in, Storage, Insurance
c. Invoice price minus any discount, Transportation-out, Storage, Insurance
d. Invoice price minus any discount, Transportation-in, cost of good sold
e. All of these

Answer: A

Costs included in the Merchandise Inventory account can include:

Costs included in the Merchandise Inventory account can include:

a. Invoice price minus any discount.
b. Transportation-in.
c. Storage.
d. Insurance.
e. All of these.





Answer: E

Which accounts don't need to do closing entries?

Which accounts don't need to do closing entries?

a. Revenue
b. Income Summary
c. Non - current Liability
d. Withdrawals
e. Expense

Answer: C

Which accounts don't need to do closing entries?

Which accounts don't need to do closing entries?

a. Revenue
b. Expense
c. Income Summary
d. Withdrawals
e. Current asset

Answer: E

Which accounts need to do closing entries?

Which accounts need to do closing entries?

a. Close Revenue accounts to Income Summary
b. Close Expense accounts to Income Summary
c. Close Income Summary account to Owner's Capital.
d. Close Withdrawals account to Owner's Capital
e. All of these

Answer: E

Which accounts belong to Permanent Accounts ?

Which accounts belong to Permanent Accounts ?

a. Revenue, asset, liability
b. Revenue, expense, income summary
c. Asset, liability, owner capital
d. Revenue, expense, withdrawal
e. Asset, liability, revenue

Answer: C

Which accounts belong to Temporary Accounts?

Which accounts belong to Temporary Accounts?

a. Asset, liability, withdrawal, income summary
b. Revenue, asset, withdrawal, income summary
c. Revenue, expense, liability, income summary
d. Revenue, expense, withdrawal, income summary
e. Revenue, expense, withdrawal, asset

Answer: D

Which is the process that resets revenue, expense and withdrawal account balances to zero at the end of the period

Which is the process that resets revenue, expense and withdrawal account balances to zero at the end of the period

a. Adjusting account
b. Closing process
c. Recording transaction
d. Prepare trial balance
e. Prepare financial statement

Answer: B

Which is true about account receivable:

Which is true about account receivable:

a. Money which is owed to a company by a customer for products and services provided on credit.
b. Money which is owed to a company by a customer for products and services provided.
c. Money which is borrowed by a company for products and services bought on credit.
d. Money which is borrowed by a company for products and services bought.
e. None of these

Answer: A

On June 1, 2010, The company paid $1,000 cash for the loan owing the bank before. Recording this transaction.

On June 1, 2010, The company paid $1,000 cash for the loan owing the bank before. Recording this transaction.

a. Debit cash and credit loan
b. Credit cash and debit loan
c. Debit account payable and credit loan
d. Credit account payable and debit loan
e. None of these



Answer: B

The company buys a new building for personal use is recorded with below entry:

The company buys a new building for personal use is recorded with below entry:

a. Debit cash and credit withdrawal
b. Credit cash and debit withdrawal
c. Credit account payable ad debit withdrawal
d. Credit cash and debit expense
e. None of these

Answer: B

Borrow $ 1,000 loan to pay for new equipment of the company is recorded with:

Borrow $ 1,000 loan to pay for new equipment of the company is recorded with:

a. Debit equipment and credit loan
b. Credit equipment and debit loan
c. Debit cash and credit loan
d. Credit cash and debit loan
e. None of these

Answer: A

The company buys a new car for personal use is recorded with below entry:

The company buys a new car for personal use is recorded with below entry:

a. Debit cash and credit withdrawal
b. Credit cash and debit withdrawal
c. Credit account payable ad debit withdrawal
d. Credit cash and debit expense
e. None of these




Answer: B

Items used in business operations, such as office pens and paper are several samples of:

Items used in business operations, such as office pens and paper are several samples of:

a. Office expense
b. Office supplies
c. Office equipment
d. Prepayment
e. None of these




Answer: B