Deck 8: End-Of-Period Procedures, Make Inventory Adjustments, Prepare Budgets, and Record Closing Entries

Question 1

Inventory starting value may be adjusted if the quantity is provided when the item is added.

Answer 1

True

Question 2

After adding an inventory item and preparing a purchase order, you will have an Inventory Start Value for the item.

Answer 2

False

Question 3

Closing entries for a company that sells inventory items is the same as a company that sells services.

Answer 3

True

Question 4

After closing a period, net income cannot be edited.

Question 5

To record depreciation for the month, you complete a(n) .

A)Expense Report
B)Equipment Value Loss Form
C)Journal Entry
D)Depreciation Adjustment Form

Question 6

An owner may make the business.

A)Additional cash investments in
B)Additional non-cash investments in
C)A withdrawal from
D)All of the above

Question 7

The report that shows actual amounts and budgeted amounts is .

A)Budget Overview
B)Budget vs.Actuals
C)Company Snapshot
D)Both A and B

Question 8

The types of accounts that may be reconciled are .

A)Assets
B)Liabilities
C)Equity
D)All of the above

Question 9

To change an existing inventory item's quantity on hand because it was damaged, you adjust .

A)Inventory Quantities
B)Inventory Start Quantity
C)Chart of Accounts
D)Opening Balance Equity

Question 10

A budget tracks income and expenses and may be helpful for use in making business decisions.