When merchandise sold is assumed to be in the order in which the purchases were made, the company is using a.weighted average cost b.first-in, last-out c.last-in, first-out d.first-in, first-out

Q: Match each description with the appropriate financial statement. A. Income Statement Reports the…

A: Solution: Income statement shows income and expenses during the period. Balance sheet shows Balance…

Q: moWhen recording a purchase of inventory on credit, which accounts are typically affected?   A)…

A: Under double entry system of book keeping one account is debited and other is credited.The Assets…

Q: The entry to record inventory shrinkage under a perpetual inventory system would include a debit to:…

A: Explanation: When There is Inventory shrinkage Under the perpetual inventory system The following…

Q: When a product is sold on credit, which account should be debited for the seller? A.cash…

A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…

Q: Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: Merchandise inventory is classified on the balance sheet as a a. current liability b. current…

A: Assets can be classified as current asset and long-term assets. Liabilities can be classified as…

Q: Which of the following journal entries is appropiate when a credit sales is made under a perpetual…

A: Under the perpetual inventory method, we need to record sales and also the cost of goods sold.

Q: The adjusting entry to account for estimated customer returns and allowances involves a a. credit to…

A: Sales returns means goods being returned by customer. Sales allowances means reductions are being…

Q: In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on…

A: The journals represent the record of organizations’ day-to-day business-related transactions which…

Q: At what amount will the inventory and cost of goods sold amounts be reported on the financial…

A: As per the accounting standards, the closing inventory must be reported at lower of cost or net…

Q: 4. Which of the following accounts are used when recording a purchase?

A: 1. If Cash purchase: If the purchase is made out of cash, both cash and inventory accounts are used…

Q: Which of the following transaction is not recorded in the general journal? Select one: A. All of…

A: Correct option is A i.e.  All of the above

Q: How do retail companies correctly match expenses with revenue for the period to get an accurate net…

A: The matching principle in accounting is a fundamental principle that requires companies to report an…

Q: How is merchandise inventory classified on the balance sheet and what is its normal balance of…

A: Merchandise inventory is a current Asset as it is expected to be sold within 12 months from the…

Q: Using a perpetual inventory system, the entry to record the return of inventory previously purchased…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: When recording a purchase of inventory on credit, which accounts are typically affected? A) Debit…

A: When assets or expenses increases it should be debited and when decreases it should be…

Q: an entry for a purchase return will include a. a debit to inventory b. a debit to sales returns and…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Match the terms with the definitions.

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarising and…

Q: What is merchandise on hand (not sold) at the end of an accounting period? It is a/an _____________.…

A: Accounting period: Accounting period refers to a time period in which the business transactions are…

Q: a debit to Accounts Payable and a credit to Merchand

A: A perpetual inventory system is an inventory management approach that uses an inventory management…

Q: A measures how successfully a company buys and sells merchandise at a profit. Gross Profit Margin B…

A: Profitability ratios are financial metrics used to assess a business's ability to generate profit…

Q: Which of the following is not disclosed in the financial statements?  A. Trade discount received B.…

A: Financial statements are formal records of the financial activities and position of a business,…

Q: In accounting what is meant by the term 'purchases'? Select one: OA. All good purchased and paid…

A: INTRODUCTION: The recorded transaction must be gathered, categorized, and summarised. Accounting is…

Q: On the work sheet, ending merchandise inventory will appear on the a. debit side of the Income…

A: Worksheet is a 10 column sheet which is used to prepare financial statements for business. It shows…

Q: 31. Under a perpetual inventory system, a.a physical count is required to determine cost of…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.