multiple choice

20. Which of the following is the usual final step in the accounting cycle? A. Journalizing transactions B. Preparing an adjusted trial balance. C. Preparing a post-closing trial balance D. Preparing the financial statements E. Preparing a work sheet. 21. The Unadjusted Trial Balance columns of a company's wor the Office Supplies account as $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance k sheet show the balance in Sheet columns of the work sheet is: A. $325 debit. B. $325 credit. C. $425 debit. D. $750 debit. E. $750 credit. 22. Cost of goods sold A. Is another term for merchandise sales. B. Is the term used for the cost of buying and preparing merchandise for sale. C. Is another term for revenue. D. Is also called gross margin. E. Is a term only used by service firms. 23. A company had sales of S695,000 and cost of goods sold of S278,000. Its gross margin equals: A. $(417,000). B. $695,000 C. $278,000. D. $417,000. E. $973,000. 24. Beginning inventory plus net purchases is: A. Cost of goods sold. B. Merchandise available for sale. C. Ending inventory D. Sales. E. Shown on the balance sheet. 25. During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is: A. Specific identification method. B. Average cost method