13. 14. 15. 16. 17. 18. Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as a. Adjusting entries. b. Closing entries. c. Final entries. d. Work sheet entries. e. Updating entries. The recurring steps performed each accounting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the a. Accounting period. b. Operating cycle. c. Accounting cycle. d. Closing cycle. e. Natural business year. A trial balance prepared after the closing entries have been journalized and posted is the a. Unadjusted trial balance. b. Post-closing trial balance. c. General ledger. d. Adjusted trial balance. e. Work sheet. A company had sales of 5695,000 and its cost of goods sold is $278,000. Its gross margin (or gross profit) equals a ($417,000) b. $695,000. c. $278,000. d. $417,000. e. $973,000. Merchandise inventory a. Is reported on the balance sheet as a current asset. b. Refers to products a company owns and intends to sell c. Can include the cost of shipping the goods to the store and making them ready for sale d. Does not appear on the balance sheet of a service company. e. All of the above. The credit terms 2/10, n30 are interpreted as a. 2% cash discount if the amount is paid within 10 days, with the balance due in 30 days. b. 10% cash discount if the amount is paid within 2 days, with the balance due in 30 days. c. 30% discount if paid within 2 days. d. 30% discount if paid within 10 days. e. 2% discount if paid within 30 days.