1- Under the periodic inventory system*

Companies do not maintain a detailed inventory records of goods on hand during an accounting period.

Companies continuously shows and update the quantity and cost of the inventory that should be on hand at any time while establishing their COGS at the end of each accounting period.

Companies continuously show and update the quantity and cost of the inventory that should be on hand at any time.

None of the above

2- A company invested $100,000 cash and $20,000 equipment in the business, they should prepare the following journal entry*

Debit cash $100,000 and credit owner's capital $100,000

Debit cash $100,000, debit equipment $20,000 and credit Owner's capital $120,000

Debit Equipment $20,000 and credit cash $20,000

None of the above

3- EMC company hired a secretary- receptionist at a salary of $1,000 per month. What is the entry to be prepared?*

Debit Salaries expense $1,000 Credit Cash $1,000

Debit Salaries expense $1,000 Credit Salaries payable $1,000

Debit Salaries payable $1,000 Credit cash $1,000

None of the above

4- BEDCO purchased office equipment for $20,000 from IKEA by paying 30% cash and 70% on account. The journal entry in IKEA's books will include*

Debit Account Receivable for $14,000

Credit Account Payable for $14,000

Credit Note Payable for $20,000

None of the above

4- Key Company collected $6,500 in October 1 of 2018 for 5 months of service which would take place from October of 2018 through February of 2019. The revenue reported from this transaction on October 1, 2018 would be:*

$0

$3,900

$6,500

$2,600

5- Free On-board shipping point means:*

The title of goods sold is transferred from seller to buyer at the port of seller. Seller is responsible for the freight charges.

The title of goods sold is transferred from seller to buyer at the port of buyer. Seller is responsible for the freight charges.

The title of goods sold is transferred from seller to buyer at the port of seller. Buyer is responsible for the freight charges.

6- The title of goods sold is transferred from seller to buyer at the port of buyer. Buyer is responsible for the freight charges.

Under the perpetual inventory System:*

Companies do not maintain detailed inventory records of goods on hand during an accounting period.

Companies continuously shows and update the quantity and cost of the inventory that should be on hand at any time while establishing their COGS at the end of each accounting period.

Companies continuously show and update the quantity and cost of the inventory that should be on hand at any time.

None of the above