7-Which of the following accounts is not closed?

Select one:

a. Prepaid Insurance

b. Supplies Expense

c. Withdrawals

d. Interest Revenue

8-Suppose in 2013, SuperTravel debited Amortization Expense for the cost of a computer used in the business. For 2013, this error:

Select one:

a. Understated net income

b. Overstated net income

c. Either A or B, depending on the circumstances

d. Had no effect on net income

9-In a periodic inventory system, the closing process includes:

Select one:

a. crediting purchase returns and allowances

b. debiting inventory for the ending balance

c. debiting sales discounts

d. debiting purchases

10-A modern automated perpetual inventory system records:

Select one:

a. Units purchased

b. Units sold

c. The quantity of inventory on hand

d. All of the above

11-The major expense of a merchandising business is:

Select one:

a. Amortization

b. Rent

c. Interest

d. Cost of goods sold

12-The perpetual and periodic inventory systems will produce identical cost of goods sold and ending inventory balances using which of the following cost flow assumptions?

Select one:

a. Weighted-average

b. Just in time

c. Average

d. First-in, First-out (FIFO)