1. Does purchase discount being deducted prior getting the total goods available for sale? True or false

2. Do separate entity principle support the concept that the business transaction and owners transaction should be accounted in the same books? True or False

4. Is there an entry to make if a company bought equipment with the terms FOB Shipping point, Freight Collect?

3. CHOOSE the correct answer:

Statement 1: Posting comes first before Trial balance

Statement 2: Trial balance comes first before journalizing

a. Statement 1 Correct; Statement 2 Incorrect

b. Statement 2 Incorrect; Statement 2 Correct

c. Both Statement Correct

d. Both Statement Incorrect