1.At the start of the year, Southern Lights had $5,000 worth of merchandise. This Merchandise is called:

a)Cost of Goods Sold.

b)beginning inventory.

c)ending inventory.

d) Purchases.

2.The financial statement on which rental income would appear is

a) income statement

b) owners equity

c)balance sheet

d) trial balance

3. The physical count of inventory was incorrect, which overstated the ending inventory. this would cause:

a) cost of goods sold to be overstated

b)cost of goods sold to be understated

c)gross profit to be understated

d) operating expenses to be understated

4.begginning merchandise inventory would be found on the worksheet in the

a) income statement debit column

b) income statement credit column

c)balance sheet debit column

d)balance sheet credit column