Lesson 5: Accounting For Inventory
Choose the best answer in the following questions.
- 1.To differentiate the Perpetual and Periodic Inventory System, what is the entry made for doing the transaction under purchasing a product.
- A.
UNDER PERIODIC METHOD- Debit Purchases Account UNDER PERPETUAL METHOD- Debit Inventory Control Account UNDER PERPETUAL METHOD- Debit Inventory Control Account
- B.
UNDER PERIODIC METHOD- Credit Sales Account UNDER PERPETUAL METHOD- Credit Sales Account
- C.
UNDER PERIODIC METHOD- Cost of Goods Sold and Reduce Inventory Value UNDER PERPETUAL METHOD- Credit Inventory Control Account
- D.
UNDER PERIODIC METHOD- Credit Purchases Account UNDER PERPETUAL METHOD- No Adjusting Entries Needed Cost Of Goods and Reduce Inventory Value
- 2.To differentiate the Perpetual and Periodic Inventory System, what is the entry made for doing the transaction under Adjusting entries a product.
- A.
UNDER PERIODIC METHOD- Sale of Product- No Entry Made To Record UNDER PERPETUAL METHOD- Debit Cost Of Goods Sold
- B.
UNDER PERIODIC METHOD- Debit Inventory Account UNDER PERPETUAL METHOD- No Adjusting Entries Needed To Record Cost of Goods Sold and Adjust Ending Inventory
- C.
UNDER PERIODIC METHOD- Sale of Product- No Entry Made To Record UNDER PERPETUAL METHOD- Debit Inventory Control Account
- D.
UNDER PERIODIC METHOD- Debit Inventory Account UNDER PERPETUAL METHOD- Credit Inventory Control Account
- 3.I t is the last step in a flow of Bookkeeping Record that uses the summarized data contained in the Trial Balance to prepare the business's financial reports .
- A.
Special Journals
- B.
General Ledger
- C.
Subsidiary Ledgers
- D.
Financial Statements
- 4.I t is the second to the last step in a flow of Bookkeeping Record that uses the information from the General Ledger to summarize the data to use for preparing the Financial Statements.
- A.
Special Journals
- B.
General Ledger
- C.
Trial Balance and Work Sheets
- D.
Financial Statements
- 5.Examples of these are Cash Receipts, Cash Disbursements, Sales Purchases, Payroll, General Journal, etc. that uses the information from the source documents to create a chronological listing of all business transactions and detailed information about each transaction.
- A.
Special Journals
- B.
General Ledger
- C.
Trial Balance and Work Sheets
- D.
Financial Statements
Questions: 16 | Attempts: 1984 | Last updated: Mar 21, 2022
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