Inventory account. D) One entry updates the subsidiary ledger and the other updates the general ledger. 7) During periods of rising prices, and being primarily concerned with tax implications, most of the companies would select: A) LIFO. B) FIFO. C) Specific identification. D) The inventory valuation does not affect taxation. 8) In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows A) Beginning inventory + purchases- ending inventory B) Beginning Inventory +purchases-net sales C)Ending inventory + purchases-net sales D)Balances in the Cost of Goods sold account less the balance in the inventory shrinkage account 9) Debt and obligations of a business are referred to as A)Assets B)Equities CJLiabilities D)Expenses 10) Wilkinson Company began the year with $175,000. During the year, the company recorded revenues of $250,000, expenses of $190,000, and paid dividends of $20,000. What was Wilkinson's retained earnings at the end of the year? A)$255,000 8)$215,000 CI$405,000 DIS235,000 11if total liabilities increased by $10,000, then AJAssets must have decreased by $10,000 B)Stockholder's Equity must have increased by $10,000 CJAssets must have increased by $10,000, or stockholder's equity must have decreased by $10,000 D)Assets and Stockholder's equity each increased by $5,000 12)A list of all accounts and their balances at a given time is called a(n) AJJournal BIPosting C)Trial Balance DIncome Statement