1. Question Content Area

   Subclassifications of operating expenses are

   a.General Expenses

   b.Selling Expenses

   c.Both "Selling Expenses" & "General Expenses"

   d.Neither "Selling Expenses" nor "General Expenses"

2. Which of the following accounts has a credit balance and is closed into Income Summary in the closing entries of a merchandising business?

   a.Freight in

   b.Depreciation Expense, Building

   c.Capital

   d.Sales

   e.Drawings

3. On the work sheet, the amount of the beginning merchandise inventory appears in the

   a.Trial Balance Credit column.

   b.Balance Sheet Credit column.

   c.Adjustments Debit column.

   d.Adjustments Credit column.

   e.Balance Sheet Debit column.

4. The physical count of inventory may be less than the accounting records due to the following:

   a.Shoplifting

   b.Receiving Errors

   c.Accounting Errors

   d.All of these choices are correct.

5. Which of the following accounts is located on the income statement columns of a work sheet?

   a.Merchandise Inventory

   b.Unearned Revenues

   c.Wages Payable

   d.Sales