Question 31

1. Which of the following accounts willnotbe found in the Cost of Merchandise Sold section of the income statement for a company using the periodic inventory method?

   	a.	Merchandise Inventory
   	b.	Purchases
   	c.	Freight-In
   	d.	Selling Expense

2 points

Question 32

1. When the perpetual inventory system is used, the inventory sold is shown on the income statement as

   	a.	cost of merchandise sold
   	b.	net purchases
   	c.	purchases
   	d.	purchases returns and allowances

2 points

Question 33

1. Which of the following accounts will only be found in the chart of accounts of a merchandising company?

   	a.	Merchandise Inventory
   	b.	Accounts Receivable
   	c.	Sales
   	d.	Accounts Payable

2 points

Question 34

1. The post-closing trial balance differs from the adjusted trial balance in that it doesnot

   	a.	include balance sheet accounts
   	b.	include income statement accounts
   	c.	take into account closing entries
   	d.	take into account adjusting entries

2 points

Question 35

1. The natural business year is a

   	a.	calendar year that ends when business activities are at their lowest point
   	b.	calendar year that ends when business activities are at their highest point
   	c.	fiscal year that ends when business activities are at their lowest point
   	d.	fiscal year that ends when business activities are at their highest point

2 points

Question 36

1. Of the following steps of the accounting cycle, which step should be completed last?

   	a.	An unadjusted trial balance is prepared.
   	b.	An adjusted trial balance is prepared.
   	c.	Adjusting entries are journalized and posted to the ledger.
   	d.	Transactions are posted to the ledger.

2 points

Question 37

1. Which of the accounts below would be closed by posting a debit to the account?

   	a.	Unearned Revenue
   	b.	Fees Earned
   	c.	Miscellaneous Expense
   	d.	Dividends

2 points

Question 38

1. After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

   	a.	the company has a net loss of $3,415 for the period
   	b.	the company has a net income of $3,415 for the period
   	c.	neither net income or loss can be calculated because it is found on the income statement
   	d.	the amounts are out of balance and need to be corrected

2 points

Question 39

1. The statement of retained earnings should be prepared

   	a.	after the income statement and balance sheet
   	b.	before the income statement and after the balance sheet
   	c.	before the income statement and balance sheet
   	d.	after the income statement and before the balance sheet

2 points

Question 40

1. Which of these titles would appear in the Income Statement columns of the end-of-period spreadsheet?

   	a.	Unearned Revenue
   	b.	Net Loss
   	c.	Prepaid Insurance
   	d.	Cash