Which of the following is false?
A. Sales is a revenue account with a normal credit balance.
B. Sales Discounts is a contra-revenue account with a normal debit balance.
C. Inventory is an asset account with a normal debit balance.
D. Cost of Goods Sold is an asset account with a normal debit balance.
Answer: D. Cost of Goods Sold is an asset account with a normal debit balance.
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If a company fails to sell everything it manufactures, the inventory is a liability on its balance sheet
a. true b. false
Which of the following is NOT part of the external environment for a manufacturer of custom-made office furniture?
A. A study on ergonomics by an engineering group B. The major distributor of wood veneers it uses in making its furniture C. The workers who craft the furniture to buyer specification D. A railway strike E. A competitor that makes similar-looking products with less expensive materials