Answer the following statements true (T) or false (F)
1) The key difference in the closing process under the periodic and perpetual inventory systems is how merchandise inventory is handled.
2) An amount that a business earns from selling merchandise inventory is known as sales revenue or sales.
3) Under the perpetual inventory system, two journal entries are used to record the sale of merchandise. One entry records the Sales Revenue and another entry records the Cost of Goods Sold.
4) In a perpetual inventory system, the Cost of Goods Sold account is debited at the time of each sale.
5) When a perpetual inventory system is used, at the time of each sale an entry to record an expense and an increase in Merchandise Inventory must be made.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
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The attributes a consumer considers important about a certain product are referred to as
A. the information set. B. product standards. C. the evoked set. D. consumer criteria. E. evaluative criteria.
To transfer an instrument made "to the order" of the payee, the payee must:
a. endorse, but not deliver the instrument to a third party b. have the instrument rewritten by a district court official c. destroy the original instrument d. create an addendum to the original instrument e. none of the other choices are correct
Lyman's business has grown to 400 employees with annual revenues of $15 million. He would like to expand further but needs another $5 million. He should consider:
A. a 7(a) guaranty loan. B. a CDC 504 loan. C. the SBIR program. D. an SBIC loan.
Stone Retail Corporation's most recent comparative Balance Sheet is as follows:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$51,000 $64,000 Accounts receivable 83,000 41,000 Inventory 96,000 87,000 Property, plant, and equipment 120,000 120,000 Less accumulated depreciation 65,000 50,000 Total assets$ 285,000 $ 262,000 Liabilities and stockholders' equity: Accounts payable$12,000 $38,000 Income taxes payable 1,000 3,000 Bonds payable 30,000 5,000 Common stock 100,000 80,000 Retained earnings 142,000 136,000 Total liabilities and stockholders' equity$ 285,000 $ 262,000 Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were
declared and paid. Stone uses the indirect method to prepare its statement of cash flows.What is Stone's net cash provided by (used in) financing activities? A. $5,000 B. $(15,000) C. $(20,000) D. $65,000