When preparing the worksheet for a merchandising business using the perpetual inventory system, which of the following statements is incorrect?
A) The merchandiser's worksheet carries the account Cost of Goods Sold.
B) The main new account is the Merchandise Inventory account.
C) The worksheet procedures are not similar to the worksheet procedures for a service company.
D) The Merchandise Inventory account must be adjusted based on a physical count due to inventory shrinkage.
C
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A firm may retire an asset from service by trading it in on a new asset. U.S. GAAP and IFRS require that firms record a trade-in that lacks commercial substance at
a. present value of future cash flows. b. replacement value. c. liquidation value. d. the carrying value of the exchanged asset. e. undiscounted cash flows.
Extraterritoriality is
A. added territory as a result of dispute settlements in wars, such as the Sakalin Islands. B. a nation's attempt to enforce its law beyond its borders. C. a citizen's claim to government assistance in a foreign environment. D. a taxable condition most international firms attempt to avoid.
Minimum-price laws are intended to protect small retailers from _____
a. price discrimination b. the Robinson-Patman Act c. predatory pricing by larger firms d. item pricing removal
_______________________ is a service provided by the U.S. Postal
A. Endicia B. PC Postage C. Indicia D. Electronic Postage