Which of the following is one of the entries made by a company using a perpetual inventory system for selling its inventory on credit?
a. purchases accounts payable
b. cost of goods sold inventory
c. sales accounts receivable
d. inventory cost of goods sold
e. inventory sales
Ans: b. cost of goods sold inventory
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At the beginning of 2011, Gannon Company received a three-year zero-interest-bearing $1,000 trade note. The market rate for equivalent notes was 8% at that time. Gannon reported this note as a $1,000 trade note receivable on its 2011 year-end statement of financial position and $1,000 as sales revenue for 2011. What effect did this accounting for the note have on Gannon's net earnings for 2011, 2012, 2013, and its retained earnings at the end of 2013, respectively?
a. Overstate, overstate, understate, zero b. Overstate, understate, understate, understate c. Overstate, overstate, overstate, overstate d. None of these
When a decreasing term policy is purchased, it contains a decreasing death benefit and
A) increasing premiums B) level premiums C) decreasing premiums D) variable premiums