Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage
would include a_______.
________ is the major difference between a service and a retail operation.
Under a perpetual inventory system, the inventory account may need to be adjusted at the end
of the period because of ________.
Under a perpetual inventory system, which accounts would be closed to income summary with
After revenues and expenses are closed to income summary, the income summary account
should have a ________ balance.
Revenue that is outside the main operations of a business, such as gain on the sale of plant
assets, is referred to as ________.
Which of the following is the result of gross profit divided by net sales?
Which subtotals appear on a multi-step income statement but do not appear on a single-step
Referring to Table 1, what is gross profit?
Inventory is classified as a(n)_______.
Under the ________ inventory costing method, ending inventory and cost of goods sold are
based on the same cost per unit that is adjusted after each new purchase.
Ending inventory for Commodity X consists of 20 units. Under the FIFO method, the cost of the
20 units is $5 each. Current replacement cost is $4.50 per unit. Using the lower-of-cost-or-
market rule to value inventory, the balance sheet would show ending inventory of _______.