At the end of the accounting period, the correct entry in the general journal to adjust for beginning inventory is to
a. debit Purchases and credit Merchandise Inventory.
b. debit Merchandise Inventory and credit Sales.
c. debit Income Summary and credit Merchandise Inventory.
d. debit the Capital account and credit a revenue account.
c
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Which one of the following statements is true with regard to the lower of cost or market rule?
A) If the direct method is used in applying the lower of cost or market rule, the loss or loss recovery due to market valuation changes is included in cost of goods sold. B) The lower of cost or market rule must be applied on an individual item basis for financial accounting purposes. C) With the application of the lower of cost or market rule using the direct method, the account, Allowance to Reduce Inventory to Market, is reported on the balance sheet as a contra asset. D) The lower of cost or market rule is primarily an application of the going concern assumption.
In which way will leadership and power be approached in upcoming chapters?
A. as a form of coercion B. as positional power C. from the perspective of the follower D. as a relational concern for both leaders and followers
Outstanding stock represents shares of stock that ________.
A) are held by the stockholders B) give the owners certain advantages C) have been authorized by state law D) have been issued but may or may not be held by stockholders
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $9900. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)
A. Debit Interest Payable, $396; credit Interest Expense, $396. B. Debit Interest Expense, $264; credit Interest Payable, $264. C. Debit Interest Expense, $198; credit Interest Payable, $198. D. Debit Interest Payable, $132; credit Interest Expense, $132. E. No adjusting entry is required.