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Under Accrual Accounting, salaries can the employer: ounting, salaries earned by employees but not yet paid should be expensed by A. B. C. In the

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Under Accrual Accounting, salaries can the employer: ounting, salaries earned by employees but not yet paid should be expensed by A. B. C. In the period with the lower earnings In the period with the higher earnings In the period in which the salaries are paid to employees In the period in which the employees perform the work Under a perpetual inventory system Accounting records continuously disclose the amount of inventory B. Increases in inventory resulting from purchases are debited to purchases There is no need for a year-end physical count D. The account purchase returns and allowances is credited when goods are returned to vendors c. 20. When using the periodic system the physical inventory count is used to determine Only the sales value of goods in the ending inventory Both the cost of the goods in ending inventory and the sales during the period Both the cost of the goods sold and the cost of ending inventory D. Only the cost of goods sold during the period 21. Tony's Market, which uses a perpetual inventory system, recorded the following chronological events involving a recent purchase of inventory: Received goods for $30,000, terms 2/10, 1/30 Returned $800 of the shipment for credit Paid the invoice within the discount period As a result of these events, the company's inventory A. Increased by $29,200 B. Increased by $30,000 C. Increased by $28,616 D. Increased by $29,400 On a multiple-step income statement, gains from sale of equipment would be reported as: A. Cost of Goods Sold B. Operating Expenses C. Sales Revenue D. Other Revenues and Expenses 23. At the beginning of the year, Wildcat Athletic had an inventory of $200,000. During the year, the company purchased goods costing $700,000. If Wildcat Athletic reported ending inventory of $300,000 and sales of $1,000,000, their cost of goods sold and gross profit rate would be $400,000 and 60% $600,000 and 40% C. $400,000 and 40% D. $600,000 and 60%

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