If the total debit column exceeds the total credit column of the income statement portion of an adjusted trial balance, then the company has a. carned net income the period. b. an error because debits do equal credits. c. suffered a net loss for the period. d. to make an adjusting entry. 2. Correcting entries a. always affect at least one balance sheet account and one income statement account. b. affect income statement accounts only. c. affect balance sheet accounts only. d. may involve any combination of accounts in need of correction. 3. Cost of goods sold is determined only at the end of the accounting period in a. a perpetual inventory system. b. a periodic inventory system. c. both a perpetual and a periodic inventory system. d neither a perpetual nor a periodic inventory system. 4. If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the a. Merchandise Inventory account will be increased due to the agreement. b. Merchandise Inventory account will not be affected due to the agreement. c. seller will bear the freight cost due to the agreement. d. carrier will bear the freight cost due to the agreement. 5. Activity in inventories affects a. only the balance sheet. b. only the income statement. c. both the balance sheet and the income statement. d neither the balance sheet nor the income statement. 6. Which of the following should be included in the physical inventory of a company a. Goods held on consignment from another company. b. Goods in transit to another company shipped FOB shipping point. C. Goods in transit from another company shipped FOB shipping point. d. Both b and c above