Answer Happy

account. 24. Accumulated depreciation is an) a. Income Statement b. Liability c. Counter d. Contra 25. An adjusted trial balance a. Proves that all entries have been posted correctly b. Is the final step in the closing process c. Provides the primary basis for preparing financial statements d. Only includes balance sheet accounts Retained Earnings is an) a. Equity Account b. Temporary Account c. Asset Account d. Revenue Account 6. The main difference between a service company and a merchandise company is a. Merchandise companies generally have inventories of what they sell b. Service companies generally have inventories of what they sell c. Merchandise companies generally have work-in-process inventories of what they sell d. Neither type of company has inventories of what they sell The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding? a. 10,000 b. 40,000 c. 30,000 d. 50,000 All of the following are acceptable methods of valuing inventory except: FILO b. LIFO c. FIFO d. Average Cost e_11