Goods were purchased on account last month. What is the correct entry to record the payment made this month for the purchase made last month?

Question 29 options:

a)	Debit cost of goods sold and credit cash

b)	Debit cash and credit accounts payable

c)	Debit accounts payable and credit accounts receivable

d)	Debit accounts payable and credit cash

Which of the following statements about the weighted-average cost method is false?

Question 31 options:

a)	It is used when inventory items are identical and when the order in which they are sold is irrelevant.

b)	Cost of goods sold is calculated using the costs of the earliest purchased inventory.

c)	The value of merchandise inventory is calculated using the unit cost at the end of the period.

d)	The unit cost is updated after every purchase and is calculated by dividing the total value of the inventory by the total number of units on hand.

Which of the following statements regarding inventory is true?

Question 33 options:

a)	Having too much inventory on hand can tie up capital

b)	Having too little inventory risks not having enough supply to meet customer demand

c)	A company must provide some safeguard for their inventory

d)	All of the above are true

Products in an electronic store consist of the following: 20 TV's purchased in January at a cost of $100 each and 30 TV's purchased in February at a cost of $110. They are all the same model. Using the FIFO inventory method, what would the remaining value of inventory be if 15 TV's were sold?

Question 34 options:

a)

$3,800

b)

$5,100

c)

$3,650

d)

$5,600

Which of the following is false?

Question 35 options:

a)	Inventory turnover ratio is calculated by dividing COGS by the average value of inventory over the period.

b)	Inventory ratio is equal to the number of times inventory was completely purchased and sold (turned over) during the period.

c)	Days' sales in inventory is equal to the average number of days it takes to sell inventory.

d)	Higher days' sales in inventory means that inventory is less likely to become obsolete because it is sold in fewer days

Which account will be used in preparing the bank reconciliation at the end of the period?

Question 36 options:

a)

Cash

b)

Inventory

c)

Revenue

d)	Accounts Receivable

What is the entry to record outstanding cheques in the ledger accounts?

Question 37 options:

a)	Debit cash; credit AR

b)	Debit AR; credit cash

c)	Debit cash; credit AP

d)	No entry is required