The Factor Which Determines Whether or Not Goods Should Be

question 162

Multiple Choice

The factor which determines whether or not goods should be included in a physical count of inventory is

• A) physical possession.
• B) legal title.
• C) management's judgment.
• D) whether or not the purchase price has been paid.

Understand the accounting cycle and the steps involved from journalizing transactions to preparing post-closing trial balance.

Distinguish between permanent (real) and temporary (nominal) accounts and their treatment in closing processes.

Grasp the concept of pro forma statements and their purpose in financial planning and analysis.

Accurately record and adjust prepaid expenses and unearned revenues in the accounting records.

---

Definitions:

Pruritus

A medical term for itching, a sensation that leads to the desire to scratch.

Alopecia

A condition resulting in partial or complete loss of hair.

Cicatrix

A scar that forms on the skin or internal organs following injury or surgery.

Cellulitis

An infection of the deeper layers of skin and the underlying tissue.