Reference no: EM132650497

Question 1.) In a merchandising business, when merchandise is sold on account, a journal entry is booked to Debit to Accounts Receivable and Credit to Sales. In addition:

Select one:

A. Cost of goods sold is debited and Merchandise inventory is credited.
B. Cost of goods sold is credited and Merchandise inventory is debited.
C. Accounts Receivable is credited and Sales is debited.
D. None of the above.

Question 2.) One of the primary objectives of inventory controls is:

Select one:

A. Safeguarding inventory from damage or theft.
B. Selling inventory at an affordable price
C. Both A & B
D. None of the above

Question 3.) How is Accounts Receivable reported on the balance sheet?

Select one:

A. In the owner's equity section.
B. In the current liabilities section.
C. In the long-term assets section.
D. In the current assets section