The Accountant for the Lintz Sales Company Is Preparing the Income

question 125

Multiple Choice

The accountant for the Lintz Sales Company is preparing the income statement for 2014 and the balance sheet at December 31, 2014. The January 1, 2014 merchandise inventory balance will appear

• A) only as an asset on the balance sheet.
• B) only in the cost of goods sold section of the income statement.
• C) as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet.
• D) as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet.

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Definitions:

Chronic Schizophrenia

A long-lasting, severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Acute

Refers to conditions or diseases that appear suddenly and are typically severe but brief in duration.

Reactive

Pertaining to a response to a stimulus or situation, often implying a lack of initiative or proactive action.

Stressful Life

Conditions or situations in one's life that cause physical or emotional tension.