Chapter 18 Quiz-Accounting II-Part I

At the start of the fiscal period, the merchandise a business has on hand is called (a)   .

A(n) (a)   is the amount added to or subtracted from an amount balance to bring that balance up to date.

The title of the account used to make the adjustment for merchandise inventory is (a)   .

(a)   is the merchandise a business has on hand at the end of the fiscal period. 

A(n) (a)   is taken to count by hand the items in stock.

What is the purpose of a ten-column worksheet in accounting?

• To manage inventory levels

• To prepare financial statements

• To record daily transactions

• To track employee performance

What does the trial balance include?

• Only profit and loss accounts

• A list of all transactions

• All general ledger accounts

• Only balance sheet accounts

How is gross profit calculated in the worksheet?

• Adjustments plus operating expenses

• Sum of debits minus credits

• Net of two specific columns

• Total revenue minus total expenses

Which columns are used to prepare the profit and loss statement?

• Columns 9 and 10

• Columns 5 through 8

• Columns 3 and 4

• Columns 1 and 2

What is added to the equity section of the balance sheet?

• Total assets

• Gross profit

• Net profit

• Total liabilities