Describe the difference between the periodic and perpetual inventory accounting systems.
What will be an ideal response?
A periodic inventory system updates the accounting records for merchandise
transactions only at the end of a period. A perpetual inventory system continually updates accounting records for merchandise transactions–specifically for those records of inventory available for sale and inventory sold. The perpetual inventory system is increasing in popularity due to technological advances and competitive pressures because it gives managers immediate access to detailed information on sales and inventory levels that a periodic system does not.
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Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations
a. True b. False Indicate whether the statement is true or false
Under U.S. GAAP or IFRS, a company can either report its comprehensive income or loss under present net income and comprehensive income in a single continuous performance statement or report it in a separate but consecutive financial statement
Indicate whether the statement is true or false
If assets are $405,000 and equity is $140,000, then liabilities are:
A. $405,000. B. $545,000. C. $670,000. D. $140,000. E. $265,000.
Which of the following guidelines is one of the basic rules given in the text for using questions?
A. Remain silent, even for a few minutes, to get an answer from the prospect. B. Agree with everything the prospect says. C. Ask a non-directive question after receiving a negative response. D. If the prospect pauses in his answer, answer for him. E. Show the prospect the product after asking a product question.