Beginning inventory plus purchases equals:
a) cost of goods sold
b) goods available for sale
c) net purchases
d) ending inventory
#2
Accounts receivable:
a) arise from the purchase of goods or services on credit
b) are amounts owed to a business by its customers.
c) are reported on the income statement.
d) will be collected within the discount period or when due.
#3
A perpetual inventory system will always give updated balances for:
a) goods available for sale and sales revenue
b) inventory and cost of goods sold
c) accounts receivable and inventory
d) Inventory and sales revenue
#4
What is the primary goal of internal controls for cash payments?
| a) | To make payments as quickly as possible | |
| b) | To ensure that payments are made only for properly authorized transactions | |
| c) | To independently verify cash payments | |
| d) | To ensure the lowest prices possible are paid |
