When Preparing the Worksheet for a Merchandising Business Using the Perpetual

question 9

Multiple Choice

When preparing the worksheet for a merchandising business using the perpetual inventory system,which of the following statements is incorrect?

• A)The merchandiser's worksheet carries the account Cost of Goods Sold.
• B)The main new account is the Merchandise Inventory account.
• C)The worksheet procedures are not similar to the worksheet procedures for a service company.
• D)The Merchandise Inventory account must be adjusted based on a physical count due to inventory shrinkage.

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Definitions:

Capital

Financial assets or the financial value of assets, such as factories and machinery, essential for producing goods and services.

National Income

The total value of all goods and services produced by a country's economy over a specific period, usually measured annually.

Richest Tenth

The segment of a population that represents the highest 10% in terms of wealth or income.

Poorest Fifth

The segment of a population that falls within the lowest 20% in terms of income distribution.