Self Assessment Quizzes

CHAPTER 18: Section 1 Identifying Accounts To Be Adjusted and Adjusting Merchandise Inventory

	1.	The section of the work sheet used to record the adjustments made at the end of the period is called the

		a.	balance sheet section
		b.	trial balance section
		c.	adjustment section
		d.	income statement section

	2.	The accounts affected by the inventory adjustment are

		a.	Merchandise Inventory and Beginning Inventory
		b.	Merchandise Inventory and Purchases
		c.	Purchases and Income Summary
		d.	Merchandise Inventory and Income Summary

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

		a.	purchase account
		b.	beginning purchases
		c.	beginning inventory
		d.	physical inventory

	4.	When beginning inventory is greater than ending inventory

		a.	credit Accounts Receivable
		b.	credit Merchandise Inventory
		c.	debit Merchandise Inventory
		d.	credit Income Summary

	5.	At the end of a period adjustments are made to transfer the cost of assets consumed from the

		a.	temporary accounts
		b.	permanent accounts
		c.	liability accounts
		d.	expense accounts

	6.	The ten-column work sheet consists of

		a.	five sections
		b.	four sections
		c.	three sections
		d.	two sections

	7.	If beginning inventory is $18,952 and ending inventory is $16,777, the adjustment is

		a.	debit Merchandise Inventory for $2,175
		b.	credit Merchandise Inventory for $2,175
		c.	debit Merchandise Inventory for $35,729
		d.	credit Merchandise inventory for $35,729