4 multiple-choice questions

10. Which of the following defines an Accounting Event the most? An economic occurrence that changes an enterprises assets, liabilities, or stockholders equity. A business event that involves transferring something of value between two entities and has a monetary impact on the financial statements of a business. A basic principle of accounting demonstrating the relationship between a companys assets and liabilities. A system of bookkeeping implying that every entry to an account requires a corresponding and opposite entry to a different account.

11. A form of inventory valuation according to which the inventory account is updated at the end of an accounting period rather than after every sale and purchase is called what?

Perpetual system Recurrent system Terminal system Periodic system

13. The recordkeeping system that provides checks and balances by recording two sides for every transaction is called what?

Matching concept Double-entry accounting Balance sheet T-account

14. Which of the following refers to the journal entry that a companys accountant has to make if a customer returns goods because of their wrong size, color, design or other reasons?

Merchandise Inventory is debited, Cash is credited. Accounts Payable are debited, Merchandise Inventory is credited. Merchandise Inventory is debited, Accounts Payable are credited. Cost of goods sold is debited, Merchandise Inventory is credited.