Ch 7 Quiz

Which of the following statements about a periodic inventory system is true?

A periodic inventory system requires that a complete physical inventory be taken each month.

Under a periodic inventory system, storeroom purchases of food items are recorded in the__________ account.

Purchases

Which of the following is not considered part of the revenue classification?

a and b sales tax and server's tips

Sales tax collected as the result of a sale of merchandise is recorded as:

a liability.

A hospitality operation uses a perpetual inventory system. How would food issues from the storeroom to the kitchen be recorded in bookkeeping accounts?

as a decrease in the inventory account and an increase in the cost of food sales account

When servers' tips are included in the credit card payment of a sale, merchants often:

distribute them to employees at the end of each shift.

Payroll, employee meals, and supplies are examples of __________ expenses.

operating

To which of the following does cost of sales expense apply?

revenue-producing centers

For accounting purposes, a sale is recognized and recorded in the revenue classification when:

services are rendered or when goods are delivered.

Depreciation is the process that allocates the cost of a(n) _______________ over its useful life.

tangible capital asset