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 toat least one T-account.(B) The general ledger contains a list of all the potential accounts that an entity may use orhas 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 thepreparation of its bookkeeping entries. Question 13.Lazy's, Inc. is a specialty furniture retailer that maintains a small number of high-value, uniqueitems 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 andvalue each item it has in inventory.(B) If Lazy's uses a periodic inventory system, it cannot use the specific identificationmethod 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 inventorysystem.(B) If an entity uses the FIFO method, the "COGS" account is generally a more accuratereflection 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 valueending 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 grossprofit and greater net income during the period.(B) During inflationary times, under the LIFO method, the entity will recognize a moreaccurate measurement of net income, but not of ending inventory.(C) During deflationary times, under the FIFO method, the entity will recognize a moreaccurate measurement of ending inventory, but not of net income.(D) All of the above are true.

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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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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