Answer:provides a running balance of cost of goods available for sale and cost of goods sold.
Explanation:
Perpetual inventory system provides a running balance of cost of goods available for sale and cost of goods sold. Under this system, no purchases account is maintained because inventory account is directly debited with each purchase of merchandise. The expenses that are incurred to obtain merchandise inventory increase the cost of merchandise available for sale. These expenses are, therefore, also debited to inventory account. Examples of such expenses are freight-in and insurances etc. Each time the merchandise is sold, the related cost is transferred from inventory account to cost of goods sold account by debiting cost of goods sold and crediting inventory account.
The balance in inventory account at the end of an accounting period shows the cost of inventory in hand. The accuracy of this balance is periodically assured by a physical count – usually once a year. If a difference is found between the balance in inventory account and a physical count, it is corrected by making a suitable journal entry. The common reasons of such difference include inaccurate record keeping, normal shrinkage, and shoplifting etc.
The closing entry for dividends involves a debit to <u>A. Retained Earnings</u> and a credit to <u>Dividends</u>.
<h3>What is a closing entry?</h3>
A closing entry is the journal entry at the end of the accounting period so that temporary ledger accounts (mainly income statement items) are moved to permanent accounts (balance sheet items).
<h3>Answer Options:</h3>
A. Retained Earnings; Dividends
B. Dividends; Retained Earnings
C. Dividends; Dividends Payable
D. Dividends Payable; Dividends
Thus, the closing entry for dividends is a debit to Retained Earnings, which is a permanent account, and a credit to Dividends (a temporary account).
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Answer:
True
Explanation:
Financial services are the activities rendered by any financial institution such as the banks to their customers. Most of the services are done at a fee that makes the main source of revenue for banks. The revenue is spent to pay the overall expenses of the bank. If the expenses are lower than the revenue, a bank makes profit. If expenses exceed revenue, a bank makes loss which is not mostly the case. Therefore, it is true to say that banks work to earn a profit by selling financial services.
The Federal Trade Commission simply focuses on the advertisement that will affect the health and safety of consumers.
<h3>What is advertisement?</h3>
Advertisement simply means the creation of awareness regarding a product or service.
Even though the Federal Trade Commission is concerned with all ad claims, the sort of ads that would most likely concern the commission is the advertisement that will affect the health and safety of consumers.
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