Identify the statements below that are correct regarding the closing entries for a merchandiser using the perpetual inventory system.Multiple select question.Sales Returns and Allowances is closed with the expense accounts.Merchandise Inventory is closed with the expense accounts.Sales Discounts is closed with the expense accounts.The Dividends account is closed to Income Summary.The Dividends account is closed to Retained EarningsSales is closed as a revenue account.Cost of goods sold is closed with the revenue accounts.Sales Discounts is closed with the revenue accounts.Cost of goods sold is closed with the expense accounts.

Select all that applyA merchandiser has four closing journal entries at the end of an accounting cycle. Select the correct entries below.Multiple select question.Close asset accounts.Close the dividends account.Close expense accounts.Close the income summary account.Close revenue accounts.Close the merchandise inventory account.

Select the statements below that correctly describe the flow of costs in a merchandiser's accounting cycle.Multiple select question.Merchandise that is sold becomes an asset reported on the balance sheet.Merchandise that is sold becomes an expense reported on the income statement.Ending inventory + Cost of goods sold = Total merchandise available for sale.Beginning inventory + net purchases = Merchandise available for sale.Merchandise that is purchased becomes an asset reported on the balance sheet.Merchandise purchased is an expense and is reported on the income statement.

Select all that applyDetermine which statements below are correct regarding merchandise available for sale during a period.Multiple select question.Ending inventory + Cost of goods sold = Merchandise available for saleCost of goods sold + Beginning inventory = Merchandise available for saleBeginning inventory + Net purchases = Merchandise available for saleBeginning inventory + Ending inventory = Merchandise available for sale

Select all that applyIdentify the statements below which are correct regarding a merchandiser's multi-step income statement.Multiple select question.Expenses are subtracted from gross profit in order to calculate net income.Accounts receivable is included on the statement.Cost of goods sold is subtracted from net sales in order to determine gross profit.Total assets is the last line on the statement.Merchandise inventory is reported on the statement.

Which statement(s) below correctly describe(s) the relationship of cost of goods sold and ending inventory? (Check all that apply.)Multiple select question.Cost of goods sold will equal total ending inventory.Cost of goods available for sale must be allocated between cost of goods sold and ending inventory.Cost of goods sold plus ending inventory will equal the total goods available for sale.Cost of goods sold plus goods available for sale will equal total goods in ending inventory.