Ending inventory is adjusted by debiting Merchandise Inventory and crediting Capital.

True

False

Which of the following could appear in an adjusting entry, closing entry, and reversing entry?

A.

Salary Expense

B.

Depreciation Expense, Buildings

C.

Withdrawals

D.

Cash

Reversing entries are done when assets or liabilities are increasing and have no previous balance.

True

False

Gross Profit equals:

A.

Cost of Goods Sold

Other Expenses.

B.

Cost of Goods Sold

Operating Expenses.

C.

Sales

Sales Returns and Allowances

Sales Discounts

Cost of Goods Sold.

D.

Net sales

Net Purchases.