Company Uses the Periodic Inventory Method and Offers the Following

question 49

Multiple Choice

Company uses the periodic inventory method and offers the following information: At the end of the period, the company does an inventory count and finds $16,000 of inventory on hand.
Which of the following pairs of T-accounts accurately represents the first two closing entries?

---

Definitions:

Government Spending Crowding Out

A situation where increased government spending leads to a reduction in private sector spending, either because of higher interest rates or because funds available for private investments are used for government projects.

Opportunity Cost

is the benefit that is missed or given up when choosing one alternative over another.

Private Investment

The expenditure on capital goods by private sector firms or individuals to increase their productive capacity.

Federal Budget

The annual financial statement presenting the government's proposed revenues and spending for a fiscal year.