When Preparing an Unadjusted Trial Balance Using a Periodic Inventory

question 161

Multiple Choice

When preparing an unadjusted trial balance using a periodic inventory system, the amount shown for Merchandise Inventory is:

• A) The ending inventory amount.
• B) The beginning inventory amount.
• C) Equal to the cost of goods sold.
• D) Equal to the cost of goods purchased.
• E) Equal to the gross profit.

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Definitions:

Corporation

A legal entity recognized by law, created by individuals or shareholders, with rights and liabilities distinct from those of its owners.

Attract Capital

Strategies or actions taken by businesses to draw in investment funds from outside sources.

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee for a beneficiary, including acting with loyalty and care.

Partnership

A business organization in which two or more individuals manage and operate the business in accordance with the terms and objectives set out in a Partnership Agreement.