Single Choice (1.5) LAK 4.Which of the following is characteristic of liabilities PENAGHMather than of 201 ENAGHM 201 A The capital providers normally have the right to exercise control over business operations. GHMC GHMIC B Interest paid to the provider of the capital is deductible in the determination of taxable income. QU C The equity matures. MOU D The capital providers' claims are residual in the event of liquidation of the business. MAL MAL Single Choice (1.5) LAK 5. Which of the following statement is true? A A transaction is first recorded in an account then the records are transferred to a journal. B The account number should be first entered in the Post Reference column of the account concerned. C As soon as a transaction is recorded in a journal, it should be immediately transferred to the accounts in the ledger. D The journal page number is entered in the Posting Reference column of the concerned account after the date and amount is entered accordingly. MA MA 6. The two basic approaches to accounting for inventory and the cost of goods sold are the perpetual inventory system and the periodic GHM inventory system. Indicate which of the AKL following statements is not correct. A Most large merchandising companies and manufacturing businesses use periodic inventory systems. B In a perpetual inventory system, the Cost of Goods sold account is debited promptly for the cost of merchandise sold. C As a practical matter, a grocery store or a large department store could not maintain a perpetual inventory system without the use of point-of-sale terminals. D In a periodic inventory system, the cost of goods sold is not determined until a complete physical inventory is taken