Question

s. The principle ledger that contains all the balance sheet and income statement accounts is the general ledger a. True b. False 6. Freight-in is considered a cost of purchasing inventory a. True b. False 7. When using FIFO inventory costing method, the most recent goods are assigned to the cost of merchandise sold a. True b. False 8. After a bank reconciliation is completed, adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement. a. Tru b. False 9. The normal balance of accumulated depreciation account is debit a. True b. False 1o. Federal unemployment taxes are paid by the employer and the employee a. True b. False Multiple Choice (2 points each) Please circle the correct

Answer 1

True. General ledger is the principal ledger that contains all the income statement and balance sheet. 6. True Cost of purchasing inventory includes freight-in cost. 7. False Under FIFO method, oldest goods are assigned to the cost of merchandise sold and most recent goods are assigned to ending inventory. False. Adjusting entries are only prepared for items in the balance per company records. No adjusting entry is prepared for items in the balance per bank statement. 9. False. The normal balance of accumulated depreciation account is credit. 10 False. Federal unemployment taxes are paid by the employer only and not by the employees.