When preparing an unadjusted trial balance using a periodic inventory system, the amount shown for Merchandise Inventory is:
A. The beginning inventory amount.
B. Equal to the gross profit.
C. Equal to the cost of goods purchased.
D. Equal to the cost of goods sold.
E. The ending inventory amount.
Answer: A
You might also like to view...
Which of the following is the term for a practice where the effective dates on stock options are deliberately changed for the purpose of securing extra pay for management?
a. Backtracking b. LEAP c. Arbitrage d. Backdating
Brice Foods Group, a European food retailer that operates supermarkets in seven countries, engaged in the following transaction during 2013: purchased and received inventory costing €500 million on account from various suppliers. Indicate the effects of the transaction on the balance sheet equation. Brice Foods Group applies IFRS, and reports its results in millions of euros
a. Assets + €500 million; Liabilities + €500 million b. Assets + €500 million; Shareholders' Equity + €500 million c. Liabilities + €500 million; Shareholders' Equity + €500 million d. Liabilities + €500 million; Shareholders' Equity - €500 million e. Assets + €500 million; Shareholders' Equity - €500 million
Firms with tangible long-term assets and predictable cash flows, such as electric utilities, tend to have balance sheets with a
a. high proportion of long-term debt (80% or more). b. low proportion of long-term debt (20% or less). c. high proportion of shareholders' equity (80% or more). d. high proportion of cash (80% or more). e. high proportion of retained earnings (80% or more).
Through product line extensions (i.e. new products and acquisitions of other brands) many companies have diversified and have a(n) ________________ of brands.
a. Category b. Allegiance c. Hierarchy d. Portfolio