Under the periodic inventory system, the journal entry to record the cost of merchandise sold at the point of sale will include which of the following?
a. none of these
b. Cost of Merchandise Sold
c. Inventory
d. Purchases
(
Q. 2) Why would the Unearned revenue account need to be adjusted at the end of the period?
A) Revenue that had been deferred is now earned.
B) Revenue has been recorded, and cash has not yet been received.
C) Liabilities are unrecorded.
D) Assets would otherwise be understated.
(
Q. 3) The ____________________ is a supply of currency and coins kept in a cash drawer for use in handling cash transactions.
Fill in the blank(s) with correct word
(
Q. 4) An accrual transaction is one in which ________.
A) the action comes before the cash
B) cash comes before the action
C) a company postpones recognizing cash transactions
D) the exchange of cash coincides with the economic substance of a transaction
(
Q. 5) The business process objectives that an internal control system is designed to achieve are:
a. control goals
b. control plans
c. general controls
d. the control matrix
(
Q. 6) Which financial statement shows Unearned revenue?
A) Income statement
B) Statement of changes in shareholders' equity
C) Statement of cash flows
D) Balance sheet
Quick Reply
