previous page next page end of completion 1. Under the lower-of-cost-or-market basis, market is defined as current replacement cost. (no answer) True False 2. Closing entries are journalized after adjusting entries have been journalized. 3. (no answer) True False Adjusting entries are not necessary if the trial balance debit and credit columns balances are equal. (no answer) True False 1 point(s) 1 point(s) 1 point(s) mak iin buraya yazn 4. A debit to an account indicates an increase in that account. (no answer) True False 1 point(s) 5. Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure. 6. (no answer) True False 1 point(s) 1 point(s) If a merchandising company sells land at more than its cost, the gain should be reported in the sales revenue section of the income statement. (no answer) True False B O W m next page end of completion 7. Gross profit represents the merchandising profit of a company. (no answer) True False 8. Inventory is classified as a current asset in a classified balance sheet. (no answer) True False 1 point(s) 1 point(s) 1 point(s) 9. The first-in, first-out (FIFO) inventory method results in an ending inventory valued at the most recent cost. 10. O (no answer) True False Last saved: - 1 point(s) 9 W 9+ ) TUR 11:49 5.01.2021 10. At the time an asset is acquired, cost and fair value should be the same. (no answer) True False 11. Inventory turnover is calculated as cost of goods sold divided by ending inventory. (no answer) True False 12. Every adjusting entry affects one balance sheet account and one income statement account. (no answer) True False in E OM O W 9+ 1 point(s) 1 point(s) 1 point(s) TUR 11:50 5.01.2021 next page 13. end of completion The normal balance of all accounts is a debit. (no answer) True False 14. A debit memorandum could show the collection of a note receivable by the bank. (no answer) True False 1 point(s) 1 point(s) 15. In applying the FIFO assumption in a perpetual inventory system, the cost of the units most recently purchased prior to sale is allocated first to the units sold. 16. (no answer) True False W 9+ 1 point(s) Last saved: - 1 point(s) ^ (4) TUR 11:50 5.01.2021 18. 1 point(s) Adjusting entries are recorded in the general journal but are not posted to the accounts in the general ledger. (no answer) True False 19. 1 point(s) Sales returns and allowances and sales discounts are subtracted from sales in reporting net sales in the income statement. (no answer) True False 20. 1 point(s) A note receivable is a written promise by the maker to the payee to pay a specified amount of money at a definite time. (no answer) True False 11:50 0 W 4) TUR 9+ 5.01.2021