Which of the following best fills in the blanks? For a merchandising company, _____________ess _____________represents the total
Question:
Which of the following best fills in the blanks?
For a merchandising company, _____________ess _____________represents the total cost of items sold during the period, being called ….
Select one:
1) beginning inventory / cost of goods sold / ending inventory
2) cost of goods available for sale / cost of goods purchased / beginning inventory
3) cost of goods purchased / ending inventory / cost of goods sold
4) cost of goods available for sale / ending inventory / cost of goods sold
Which transaction impacts shareholders’ equity?
Select one:
1) Investment of cash by shareholders
2) purchase of equipment with money invested by shareholders
3) purchase of land from the proceeds of a bank loan
4) Investment in other firms’ shares
Below is a list of statements about inventory costing systems (FIFO, LIFO, weighted average cost) that are either true or false. Which of the answers best describes the sequence of statements?
- In the inflationary times, the costs of ending inventory based on FIFO will best approximate their current cost.
- In the inflationary times, the costs of goods sold based on FIFO is higher than LIFO.
- The application of the average-cost method leads to lowest tax expense
Select one:
1) True, False, False
2) False, True, False
3) True, False, True
4) False, True, True
The revenue recognition principle dictates that revenue should be recognized in the accounting records
Select one:
1) in the period that income taxes are paid.
2) at the end of the month.
3) when the performance obligation is satisfied.
4) when cash is received.