Mark and Amanda Carter own an appliance store and arestaurant. The appliance store sells merchandise on a12-month installment plan; the restaurant sells only for cash.Which of the following statements are true? (More than oneanswer may be correct.)a. The appliance store has a longer operating cycle thanthe restaurant.b. The appliance store probably uses a perpetual inventorysystem, whereas the restaurant probably uses a periodicsystem.c. Both businesses require subsidiary ledgers for accountsreceivable and inventory.d. Both businesses probably have subsidiary ledgers foraccounts payable.
Mark and Amanda Carter own an appliance store and arestaurant. The appliance store sells merchandise on a12-month installment plan; the restaurant sells only for cash.Which of the following statements are true? (More than oneanswer may be correct.)a. The appliance store has a longer operating cycle thanthe restaurant.b. The appliance store probably uses a perpetual inventorysystem, whereas the restaurant probably uses a periodicsystem.c. Both businesses require subsidiary ledgers for accountsreceivable and inventory.d. Both businesses probably have subsidiary ledgers foraccounts payable.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 1CP
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Question
Mark and Amanda Carter own an appliance store and a
restaurant. The appliance store sells merchandise on a
12-month installment plan; the restaurant sells only for cash.
Which of the following statements are true? (More than one
answer may be correct.)
a. The appliance store has a longer operating cycle than
the restaurant.
b. The appliance store probably uses a perpetual inventory
system, whereas the restaurant probably uses a periodic
system.
c. Both businesses require subsidiary ledgers for accounts
receivable and inventory.
d. Both businesses probably have subsidiary ledgers for
accounts payable.
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