1. What inventory method is used when the inventory balance is updated after each sale or purchase?

A. Perpetual

B. Interim

C. Cost of Sales

D. Cost of Goods Sold

2. Sam received $8,000 in advance for renting part of his building. What is the entry to record the receipt?

A. Debit Cash; credit Rental Income

B. Debit Cash; credit Rent Expense

C. Debit Cash; credit Prepaid Rent Expense

D. Debit Cash; credit Unearned Rent Revenue

3.Mortgage Payable:

A. has a credit balance.

B. is an unsecured loan.

C. has a debit balance.

D. shows the amount expected to be paid within the current period.

4.

On the basis of the accounts provided below, calculate a. Net sales b. Cost of goods sold (after adjustment) c. Gross profit d. Net income (Click the icon to view the account information.) - Account Information a. Net sales b. Cost of goods sold (after adjustment) c. Gross profit d. Net income Accounts Payable Operating Expenses Kiln Co., Capital Cost of Goods Sold Ending Inventory, December 31, 2019 Sales Accounts Receivable $ 5,900 2,300 19,300 4,300 1,100 10,250 1,519 810 290 1,050 324 Cash Sales Returns and Allowances Physical Count of Inventory December 31, 2019 Sales Discounts Print Done