At the End of the Accounting Period, the Correct Entry

question 19

Multiple Choice

At the end of the accounting period, the correct entry in the general journal to adjust for beginning inventory is to

• A) debit Purchases and credit Merchandise Inventory.
• B) debit Merchandise Inventory and credit Sales.
• C) debit Income Summary and credit Merchandise Inventory.
• D) debit the Capital account and credit a revenue account.

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Definitions:

Cutting Your Losses

A decision-making process where one decides to exit a situation to prevent further loss or harm.

Stress-Producing Problem

An issue or situation that causes a significant amount of mental or emotional strain, often leading to adverse effects on one’s health and well-being.

Problem-Focused Coping

A coping strategy that involves directly addressing a problem causing stress in order to reduce or remove the source of the stress.

Catastrophic Thinking

The inclination to assume the worst case scenario or believe that negative events are much worse than they are in reality.