Reference no: EM132740079

Problem 1: Under the perpetual inventory system the account that is not closed to the Profit and Loss Summary account is:

a. Cost of Sales

b. Inventory

c. Sales

d. Sales discount

Problem 2: Which of these expressions is correct?

a. Gross profit less expenses = profit.

b. Sales less cost of sales less expenses = profit.

c. Profit plus expenses = gross profit.

d. All of the expressions are correct.

Problem 3: Detailed records of goods held for resale are maintained under a

a. perpetual inventory system.

b. periodic inventory system.

c. double entry accounting system.

d. single entry accounting system.