Step Two in Completing a Worksheet Is to

question 134

Multiple Choice

Step two in completing a worksheet is to

• A) prepare the trial balance
• B) subtotal income debit and credit columns
• C) combine the trial balance amount of each account with the adjustments
• D) analyze accounts

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Definitions:

Periodic system

An inventory accounting system that updates inventory balance and cost of goods sold at the end of an accounting period.

Ending inventory

The total value or quantity of goods on hand at the end of an accounting period.

LIFO method

An inventory cost-flow assumption where the last items purchased or produced are the first to be expensed as sold, opposite of FIFO.

Cost of merchandise sold

The total expense incurred to produce or purchase the goods sold by a company during a specific period.