In Preparing Closing Entries for a Merchandiser, the Income Summary

question 26

Multiple Choice

In preparing closing entries for a merchandiser, the Income Summary account will be credited for the balance of

• A)sales.
• B)merchandise inventory.
• C)sales discounts.
• D)freight-out.

Calculate depreciation and its effect on cash flow from operating activities.

Explain the treatment of non-cash transactions in the cash flow statement.

Understand the impact of stock transactions on the cash flow statement.

Analyze the effect of changes in inventory, receivables, and payables on cash flow from operations.

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