When recording the sale of a product, which account is increased? A) Inventory B) Accounts Receivable C) Notes Payable D) None of the choices are correct Group of answer choices A B C D
Q: Where there is a reversal of a previous inventory write-down, the entry would involve a _______to…
A: Inventory is the combination of all the goods which are ready for sale, goods which are in process,…
Q: What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping…
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A: a) Cost of goods sold= Opening inventory + Purchases - Ending inventory Lets take a example…
Q: Which of the following statements about merchandisingactivities is true? (More than one answer may…
A: Merchandising activities means activities of purchase and sale of goods that are ready for sale.…
Q: Which of the following transactions would not result in an adjustment to the inventory account under…
A: Sale of merchandise on cash and credit and merchandise return all includes inventory account but…
Q: Which of the following statements is incorrect?
A: Cost of Goods Sold: Cost of Goods sold is the Cost of the items that are sold it is calculated for…
Q: Which income statement account(s) would be affected by a policy choice at the same time as the…
A: Inventory is directly related to the cost of goods sold. To change the policy of valuation of…
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Q: Which of the following statement is False for a Simple-Step Income Statement? a. Net Profit can be…
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Q: When a periodic inventory system is used, a.only revenue is recorded each time a sale is made.…
A: Under perpetual inventory, both the sales entry and cost of goods sold entry are recorded each time…
Q: Do you agree with the following statements? Express your opinion on each statement.
A: 1: This statement is correct This can be explained with the help of example: Suppose closing stock…
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A: Introduction:- The following three types of accounting changes, including error correction as…
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A: Ending inventory Retained earnings cost of goods sold Net income…
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Q: a) merchandise inventory, b) accounts payable, c) cost of goods sold, d) customer refunds…
A:
Q: Which of the following is incorrect about the perpetual inventory method? a. purchases are…
A: Perpetual inventory method : Perpetual inventory method records real time transactions of inventory…
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A: Given information is: Ajax Corporation overstates its ending inventory amount.
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A: Error of Omission: It is an error where no entry is being recorded even though transactions are…
Q: No entry is made to recognize cost of goods sold when inventory is sold under periodic inventory…
A: Solution: Under periodic inventory system, inventory is not updated with every purchase and sales,…
Q: Which of the following accounts does not belong in the purchases and disbursement cycle?
A: A disbursement is the paying out of funds, whether to make a purchase or other transaction.…
Q: 2. Gabriela Company’s auditor discovered that the company inadvertently overstated ending Inventory…
A: Inventory means the goods in which the business deals. Inventory should be valued correctly as it…
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Q: 4. The purchase of inventory items on account using the perpetual inventory method a. Has no…
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A: "Hello Student! Since you have posted multiple questions, we would answer the first question as per…
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A: FIFO is the First-in and First-out method of valuation of Inventory. Under this method, it is…
Q: inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. True F
A: Solution: False. The statement that Ending inventory is added to Total Goods Available for Sale when…
Q: 1. If the inventory account at the end of the year is understated, the effect will be to…
A: SOLUTION- IF ENDING INVENTORY IS UNDERSTATED , THE COST OF GOOD SOLD FOR THAT YEAR (2018) WILL BE…
Q: 3.Which of the following transactions would not result in an adjustment to the inventory account…
A: Perpetual inventory system is the one in which the record relating to the inventory is to be…
Q: 1. What is the effect on net income if a company fails to record a purchase in transit (FOB shipping…
A: Net income refers to the income which is calculated by deducting cost of goods sold, expenses,…
Q: The accountant for the Fred Company did not record a purchase of merchandise on credit or include…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Indicate the best answer(s) for each question: Which of the following statements about perpetual…
A: Under perpetual inventory system, the inventory record is maintained with every sale and purchase.
Q: Which of the following statement is False for a Simple-Step Income Statement? a. Total expenses…
A: An income statement is one of the financial statements of a company which is prepared at the end of…
Q: 3. Indicate the effect of the following errors on gross profit and cost of goods sold (COGS), i.e.,…
A: Cost of goods sold (COGS)- The cost incurred on the goods sold during the period is referred to as…
A) Inventory
B) Accounts Receivable
C) Notes Payable
D) None of the choices are correct
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- Which of these statements is false? A. If cost of goods sold is incorrect, ending inventory is usually incorrect too. B. C. D.Which of the following is not an element of the financial statements? A. future potential sales price of inventory B. assets C. liabilities D. equityWhich of the following statements about merchandisingactivities is true? (More than one answer may be correct.)a. As inventory is purchased, the Inventory Expenseaccount is debited and Cash (or Accounts Payable) iscredited.b. Inventory is recorded as an asset when it is firstpurchased. c. As inventory is sold, its cost is transferred from the bal-ance sheet to the income statement. d. As inventory is sold, its cost is transferred from theincome statement to the balance sheet.
- Which income statement account(s) would be affected by a policy choice at the same time as the inventory balance sheet account. a. Bad debts expense b. Cost of goods sold expense c. Depreciation or amortisation expense d. Sales revenueIn accounting for by-products, when the by-products are sold for more than the estimated sales value, the difference is: a. credited to Gain or Loss on Sale of By-Product b. debited to Gain or Loss on Sale of By-Product c. immaterial, so not recorded. d. credited to By-Product Inventory.H6. Lower of cost or market is an attribute used for the: a. initial measurement of accounts receivable b. subsequent measurement of inventory c. subsequent measurement of accounts receivable d. initial measurement of inventory Explain All wrong options and explain with full details
- Please answer the following blanks. moving on, Under requirement 2, options are cost of good sold, ending inventory, gross profit, income before income tax, income tax expense, operating expenses, sales revenue.Which of the following accounts does not belong in the purchases and disbursement cycle? Group of answer choices a.Prepayments b.Accounts payable c.Sales returns and allowances d.Fixed assetsWhich of the following accounts is an example of a contra-asset?A) Cost of Goods Sold B)Sales Discounts C) Purchases D) Deferred Revenue E) LIFO Reserve
- Required: Answer the following independent questions and show all computations supporting your answers. a) Assume that the company uses the FIFO method. The value of the ending inventory atDecember 31 is $__________. b) Assume that the company uses the LIFO method. The value of the ending inventory onDecember 31 is $__________.c) Determine the difference in the amount of income that the company would have reported if ithad used the FIFO method instead of the LIFO method. Would income have been greater orless? Which method would provide more tax advantage? -Explain your rationale.Which of the following statements is incorrect? Select one: a. By using the IFRS, goods shipped on consignment from a seller to another company should be included in the inventory of the seller. b. Many argue that LIFO provides a better matching of current costs against revenue from a financial reporting point of view. c. Both IFRS and GAAP account for inventory acquisitions at historical cost and value inventory at the lower-of-cost-or-net-realizable value subsequent to acquisition. d. Both inventory and net income are higher when companies use LIFO in a period of inflation.What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping point) and also failed to include the purchase in physical inventory? a. Income is overstated b. Income is understated c. Income is correct d. Not enough information is provided to determine the answer