1. Question 34A merchandising company's operating cycle begins with the sale of inventory and ends with the cash collection from sales.
2. True
3. False

5 points

Question 35

1. When a company routinely sells on credit, it is inevitable that some of its customers will not pay the amount owed.
2. True
3. False

5 points

Question 36

1. Goods placed in inventory are initially recorded at market value.
2. True
3. False

5 points

Question 37

1. Inventory shrinkage is the difference between inventory recorded and inventory counted.
2. True
3. False

Question 1 An adjusted trial balance is completed to check that debits still equal credits after the income statement is prepared.

1. True
2. False

5 points

Question 2

1. The payment of dividends is a financing activity on the statement of cash flows.
2. True
3. False

5 points

Question 3

1. The amount charged for a good or service provided to a customer on account is recorded only after the payment is received.
2. True
3. False