SECTTION 1 THROUGH 50 PLEASE SELECT THE LETTER THAT BEST ANSWER THE QUESTIONS (2 POINTS EACH). 1. The formula for calculating Cost of Goods Sold using the periodic inventory method is a. Purchases +Goods Available for Sales-Ending Inventory b. Goods Available for Sales+ Purchases-Ending Inventory c. Beginning Inventory+Purchases-Ending Inventory d. Ending Inventory+Purchases - Purchase Returns 2. The accounting process is correctly sequenced as a. identification, communication, recording. b. recording, communication, identification c. identification, recording, communication. d. communication, recording, identification. 3. The Prepaid Insurance Expense adjusting entry for $100 was net posted. What impact wil this have on the financial statement? a. Revenues and Liabilities will be overstated. b. Expenses and Liabilities will be understated. c. Assets and Owner's Equity will be overstated. d. Owner's Equity and Assets will be understated. 4. Receivables are frequently classified as? a. accounts receivable and general receivables. b. accounts receivable, notes receivable, and employee receivables. c. accounts receivable, notes receivable, and other receivables. d. accounts receivable, company receivables, and other receivables. 5. Which of the following is an external user of accounting information? a. Labor unions. b. Finance directors. c. Company officers. d. Managers. ACCOUNTING 101 SPRING 2018 PAGE