Which of the following statements is true? a debit to at least one T-account and a credit to (A) Every financial transaction will result at least one T-account. (B) The general ledger contains a list of all the potential accounts that an entity may use or has ever used In the preparation of its bookkeeping entries. (C) Changes to the "accounts receivable" T-account are always entered as debits. (D) A chart of accounts lists only the entity's most frequently used accounts in the preparation of its bookkeeping entries.
Which of the following statements is true? a debit to at least one T-account and a credit to (A) Every financial transaction will result at least one T-account. (B) The general ledger contains a list of all the potential accounts that an entity may use or has ever used In the preparation of its bookkeeping entries. (C) Changes to the "accounts receivable" T-account are always entered as debits. (D) A chart of accounts lists only the entity's most frequently used accounts in the preparation of its bookkeeping entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Question 12.
Which of the following statements is true?
(A) Every financial transaction will result in a debit to at least one T-account and a credit to
at least one T-account.
(B) The general ledger contains a list of all the potential accounts that an entity may use or
has ever used In the preparation of its bookkeeping entries.
(C) Changes to the "accounts receivable" T-account are always entered as debits.
(D) A chart of accounts lists only the entity's most frequently used accounts in the
preparation of its bookkeeping entries.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7e66aa7-a24e-4797-882c-e1907e76b0e0%2F63781508-fcc0-4eaa-b969-4e8ccd1a9b28%2Ffhijfss_processed.png&w=3840&q=75)
Transcribed Image Text:Question 12.
Which of the following statements is true?
(A) Every financial transaction will result in a debit to at least one T-account and a credit to
at least one T-account.
(B) The general ledger contains a list of all the potential accounts that an entity may use or
has ever used In the preparation of its bookkeeping entries.
(C) Changes to the "accounts receivable" T-account are always entered as debits.
(D) A chart of accounts lists only the entity's most frequently used accounts in the
preparation of its bookkeeping entries.
![Question 13.
Lazy's, Inc. is a specialty furniture retailer that maintains a small number of high-value, unique
items in its inventory. Lazy's began operating in California in January 2022.
Which of the following accurately reflects how Lazy's should account for its inventory during
(including at the end of) its first accounting period?
(A) Lazy's should use a perpetual inventory system because it can specifically track and
value each item it has in inventory.
(B) If Lazy's uses a periodic inventory system, it cannot use the specific identification
method to assign value to its inventory.
(C) Lazy's should use the specific identification method to assign value to its inventory.
(D) Only answer choices (A) and (C) are correct.
(E) All of the above are correct.
Question 14.
Which of the following statements about cost flow assumptions is true?
(A) If an entity uses the welghted average method, it can only use the periodic inventory
system.
(B) If an entity uses the FIFO method, the "COGS" account is generally a more accurate
reflection of the entity's COGS expense incurred for the period.
(C) If an entity uses the LIFO method, the oldest items in inventory are sold first.
(D) If an entity uses the specific identification method, the LIFO method is used to value
ending inventory.
(E) None of the above are true.
Question 15.
Which of the following statements aboul the cost of inventory for an entity is (or are) true?
(A) During inflationary times, under the FIFO method, the ontity recognizes greater gross
profit and greater net income during the period.
(B) During inflationary times, under the LIFO method, the entity will recognize a more
accurate measurement of net income, but not of ending inventory.
(C) During deflationary times, under the FIFO method, the entity will recognize a more
accurate measurement of ending inventory, but not of net income.
(D) All of the above are true.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7e66aa7-a24e-4797-882c-e1907e76b0e0%2F63781508-fcc0-4eaa-b969-4e8ccd1a9b28%2F2s9rzg_processed.png&w=3840&q=75)
Transcribed Image Text:Question 13.
Lazy's, Inc. is a specialty furniture retailer that maintains a small number of high-value, unique
items in its inventory. Lazy's began operating in California in January 2022.
Which of the following accurately reflects how Lazy's should account for its inventory during
(including at the end of) its first accounting period?
(A) Lazy's should use a perpetual inventory system because it can specifically track and
value each item it has in inventory.
(B) If Lazy's uses a periodic inventory system, it cannot use the specific identification
method to assign value to its inventory.
(C) Lazy's should use the specific identification method to assign value to its inventory.
(D) Only answer choices (A) and (C) are correct.
(E) All of the above are correct.
Question 14.
Which of the following statements about cost flow assumptions is true?
(A) If an entity uses the welghted average method, it can only use the periodic inventory
system.
(B) If an entity uses the FIFO method, the "COGS" account is generally a more accurate
reflection of the entity's COGS expense incurred for the period.
(C) If an entity uses the LIFO method, the oldest items in inventory are sold first.
(D) If an entity uses the specific identification method, the LIFO method is used to value
ending inventory.
(E) None of the above are true.
Question 15.
Which of the following statements aboul the cost of inventory for an entity is (or are) true?
(A) During inflationary times, under the FIFO method, the ontity recognizes greater gross
profit and greater net income during the period.
(B) During inflationary times, under the LIFO method, the entity will recognize a more
accurate measurement of net income, but not of ending inventory.
(C) During deflationary times, under the FIFO method, the entity will recognize a more
accurate measurement of ending inventory, but not of net income.
(D) All of the above are true.
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