NAME: JEFFREY M.

BASTIDA
COURSE AND YEAR: BSAIS 2
SUBJECT: COST ACCOUNTING AND CONTROL

CHAPTER 6: TRUE OR FALSE

1. True
2. False
3. True
4. True
5. True
6. False
7. True
8. False
9. True
10. False

What are the normal balances of accounts?

Account Classification Normal Balance

Assets Debit
Contra asset Credit
Liability Credit
Contra liability Debit
Owner's Equity Credit
Stockholders' Equity Credit
Owner's Drawing or Debit
Dividends Account
Revenues (or Income) Credit
Expenses Debit
 Gains Credit
Losses Debit

CHAPTER 7: TRUE OR FALSE

1. True
2. False
3. False
4. True
5. True
6. False
7. False
8. False
9. False
10. True
11. True
12. True
13. True
14. True
15. False

What inventory system should be used if there the

transaction is silent? Periodic or perpetual.
 When it comes to accounting, it’s important to choose the right
inventory system to accurately track inventory levels and costs.
However, what happens when the problem doesn’t specify which
inventory system to use? In this situation, it’s generally assumed that
the perpetual inventory system is being used, but it’s still important
to confirm with the task or situation to ensure accuracy.

The perpetual inventory system is the most commonly used

method in modern accounting practices because it provides real-
time tracking of inventory and cost of goods sold. With this system,
inventory and cost of goods sold accounts are updated continuously
as goods are bought and sold. This allows for more accurate
inventory tracking and enables a company to monitor its inventory
levels in real-time. Additionally, the perpetual system provides
detailed information on the cost of goods sold, which can be useful
for financial analysis and decision-making.
On the other hand, the periodic inventory system updates
inventory and cost of goods sold accounts only at the end of a
specific period, usually at the end of the month or year. This system
may be simpler to use, but it can be less accurate and more time-
consuming than the perpetual system.

If the problem is silent about which inventory system to use,

it’s generally safe to assume that the perpetual inventory system is
being used. However, it’s always a good idea to confirm with the task
or situation to make sure that you’re using the correct inventory
system. By understanding the differences between the perpetual and
periodic inventory systems, you can make informed decisions when
it comes to accounting and ensure accurate tracking of inventory
levels and costs