When Preparing the Worksheet for a Merchandising Business Using the Perpetual

question 37

Multiple Choice

When preparing the worksheet for a merchandising business using the perpetual inventory system,which of the following is not a new merchandising account that is shown on the worksheet?

• A)Accumulated Depreciation - Building
• B)Sales Returns and Allowances
• C)Cost of Goods Sold
• D)Merchandise Inventory

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Definitions:

Wages Owed

The total amount of compensation that a company owes to its employees for work performed but not yet paid.

Cash Account

A ledger account that represents the amount of cash a company has on hand at any given time.

Credit

An accounting entry that either decreases assets or increases liabilities and equity on a company's balance sheet, or an entry on the right side of a double-entry bookkeeping system that represents the addition of value to an account.

Debit

An accounting entry that increases assets or expenses or decreases liabilities, equity, or revenue.