Question

29. ccount balances, after closing entries have Apost-closing trial balance will reflect account balances, after clos been posted to reset the temporary accounts, as follows: A) zero balances for balance sheet accounts. B) Balances only showing in income statement accounts C) Balances only showing for balance sheet accounts. D) zero balances for all accounts. 30. True or False: Ratio analysis expresses the relationship among selected items or financial statement data and includes liquidity, solvency and profitability ramos. A) True B) False 31. A primary difference between a periodic and perpetual inventory system is that a periodic system: A) keeps a record showing the inventory on hand at all times. B) records the cost of goods sold on the date the sale is made. C) determines the inventory on hand/ ending inventory balance and cost of goods sold only at the end of the accounting period. D) provides better control over inventories. 32. If a company purchases inventory, pays the transportation costs to bring that inventory to their warehouse, and uses a perpetual inventory system, the: A) Inventory account is not affected. B) Delivery Expense account is increased C) Freight-In account is increased D) Inventory account is increased. 33. True or False: The mathematical equation that represents the natural flow of transactions into and out of the inventory account is: Beginning Inventory plus purchases - Cost of Goods Available for Sale - Cost of Goods Sold - Ending Inventory A) True B) False 34. Holly Company purchased merchandise inventory with an invoice price of $6,000 and credit terms of 2/10, n/30. What is the net cost of the goods purchased if Holly Company pays within the discount period? A) $6,000 B) $5,880 C) $5,400 D) $5,520

anything helps

Answer 1

Solution 29:

A post closing trial balance reflects account balances after closing entries have been posted to reset temporary accounts as
"Balances only showing for balance sheet accounts"

Hence option C is correct.

Solution 30:

True, ratio analysis express the relationship among selected items of financial statements data and includes liquidity, solvency and profitability ratios.

Hence option A is correct.

Solution 31:

A primary difference between a periodic and perpetual inventory system is that a periodic system "determines the inventory on hand/ending inventory balance and cost of goods sold only at the end of accounting period"

Hence option C is correct.

Solution 32:

Inventory account is increased on payment of fright under perpetual inventory system.

Hence option D is correct.

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