20. Which account is not used with a perpetual inventory system?

1. Sales Returns and Allowances
2. Purchase Returns and Allowances
3. Inventory
4. Cost of Goods Sold

21. If the beginning capital was $14,000 and in a fiscal period there was revenue of $8,000, withdrawals of $3,000, and expenses of $1,500 then the ending capital would be

1. $26,500.
2. $23,500.
3. $17,500.
4. $20,500.

22. Cash had a normal starting balance of $600. There were debit postings of $200 and credit postings of $300 during the month. The ending balance is

1. $500 credit.
2. $1,100 debit.
3. $500 debit.
4. $1,100 credit.

23. "PR" in the general journal and general ledger stands for

1. peer reviewer.
2. posting reference.
3. prior receipt.
4. None of the above are correct.

24. The main reason most businesses do not use only a General Journal is

1. a General Journal is much too inefficient.
2. a General Journal is prone to many errors.
3. two or more clerks cannot use the General Journal at the same time.
4. both A and C are correct

25. The arrangements between buyer and seller as to when payments for merchandise are to be made are called

1. credit terms.
2. net cash.
3. cash on demand.
4. gross cash.