Question 1

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

Accepted Answer

Inventory systems often allow adjustments to the starting value of an item based on the initial quantity provided to ensure accurate tracking and valuation.

Question 2

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

Accepted Answer

Adding an inventory item and preparing a purchase order does not automatically create an Inventory Start Value. The Inventory Start Value is typically set when the item is first added to the inventory with an initial quantity and cost.

Question 3

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

Accepted Answer

True

Question 4

After closing a period, net income cannot be edited.

Accepted Answer

The answer of After closing a period, net income cannot...

Question 5

To record depreciation for the month, you complete a(n) .&#10;A)Expense Report&#10;B)Equipment Value Loss Form&#10;C)Journal Entry&#10;D)Depreciation Adjustment Form

Accepted Answer

To record depreciation for the month, you need to complete a journal entry. Depreciation is an expense, and it needs to be recorded in the general ledger as an adjusting entry. This entry reduces the book value of the asset and records the expense in the income statement. Therefore, the correct answer is C, which is Journal Entry.

Question 6

An owner may make the business.&#10;A)Additional cash investments in&#10;B)Additional non-cash investments in&#10;C)A withdrawal from&#10;D)All of the above

Accepted Answer

An owner can make additional cash investments in the business, additional non-cash investments (like equipment or other assets), and withdrawals from the business. These actions are part of managing the business's finances and assets.

Question 7

The report that shows actual amounts and budgeted amounts is .&#10;A)Budget Overview&#10;B)Budget vs.Actuals&#10;C)Company Snapshot&#10;D)Both A and B

Accepted Answer

The "Budget vs. Actuals" report specifically compares actual amounts to budgeted amounts, highlighting variances.

Question 8

The types of accounts that may be reconciled are .&#10;A)Assets&#10;B)Liabilities&#10;C)Equity&#10;D)All of the above

Accepted Answer

All three types of accounts (assets, liabilities, and equity) need to be reconciled to ensure accurate financial statements. Reconciliation ensures that the ending balance on the company's books matches the ending balance on the bank statement or other external records.

Question 9

To change an existing inventory item's quantity on hand because it was damaged, you adjust .&#10;A)Inventory Quantities&#10;B)Inventory Start Quantity&#10;C)Chart of Accounts&#10;D)Opening Balance Equity

Accepted Answer

Inventory Quantities should be adjusted to reflect the decrease in quantity due to the damaged item. This will ensure that the inventory records accurately reflect the quantity on hand and prevent errors in future transactions. Adjusting Inventory Start Quantity or Chart of Accounts would not be relevant for this situation, and opening balance equity is used to record the initial balances of accounts when starting a new accounting period, so it would not be applicable in this situation either.

Question 10

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

Accepted Answer

A budget helps to track the flow of revenue and expenses, which can aid in making informed business decisions.

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