Name Spring 2019 MULTIPLE CHOICE (22 pts) 1. The credit terms 1/10, n/30 are interpreted as is paid within 10 days, otherwise balance due in full in 30 days amount is paid in 2 days, otherwise balance due in full in 30 days d, 30% discount if paid in 30 days 2. Which of the following does NOT require an adjusting entry at year end a. b. o. d. Acerued wages Supplies used during the period Cash i Expired portion of prepaid insurance 3. R basis of accounting: are reported in the income statement in the period in which they are earned under which a. cash basis b. adjusting basis c. accrual basis d. cost basis 4. The adjusting entry to record an acerued expense is a. Increase an expense; increase a liability b. Increase an asset; increase revenue. c. Decrease a liability; increase revenue. d. Increase an expense; decrease an asset, 5. Costs of goods available for sale equals the: inventory and net purchases during the period b. c. d. Ending inventory and beginning inventory Ending inventory and cost of goods sold Beginning inventory and net purchases 6. Prepaid expenses are: a. b. c. d. payment for products and services that do not ever expire classified as liabilities on the balance sheet decreases in equity assets that represent a prepayment of expenses that will benefit more than one accounting peri 7. Which of the following accounts is used in the periodic inventory system but NOT used in the perpetual inventory system? a. merchandise inventory b. Purchases c. Sales d. Accounts Payable