Lesson 5: Accounting For Inventory

5 Questions | Total Attempts: 327

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Lesson Quizzes & Trivia

Choose the best answer in the following questions.


Questions and Answers
  • 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

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