Which Type of Account Would NOT Be Reported on the Balance

question 41

Multiple Choice

Which type of account would NOT be reported on the balance sheet?

• A) Expense
• B) Cash
• C) Accounts Payable
• D) Equipment

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Definitions:

Periodic Inventory System

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

Gross Method

An accounting practice for recording inventory purchases without deducting any purchase discounts, which are recorded only if they are actually taken.

Terms 2/10, N/60

A trade credit term where a buyer can deduct 2% from the invoice amount if payment is made within 10 days; otherwise, the full invoice amount is due in 60 days.

Merchandise Inventory

An asset and perpetual inventory system account that records purchases of merchandise. Discounts and returns are recorded in this account for the buyer.