Question: 1. A merchandiser uses a perpetual inventory system. The third step in the process of closing the accounts of a merchandiser is to ________. A.

1. A merchandiser uses a perpetual inventory system. The third step in the process of closing the accounts of a merchandiser is to ________.

A. make the revenue accounts equal to zero via the Income Summary account
B. make the Income Summary account equal to zero via the Owner, Withdrawals account
C. make the Income Summary account equal to zero via the Owner, Capital account
D. make the expense accounts equal to zero via the Income Summary account

2.

Liquidity is a measure of how ________.

A. long an asset can be used
B. easily an asset can be exchanged for another asset
C. short an operating cycle is
D.

quickly an asset may be converted into cash

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