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Chapter 12 - Accruals, Deferrals, and the Worksheet
Chapter 12
Accruals, Deferrals, and the Worksheet
1. When the accrual basis of accounting is used, expenses are recognized only in the period
during which they are paid.
2. The balance of the Merchandise Inventory account that appears in the Trial Balance section
of the worksheet represents the stock of goods on hand at the beginning of the current period.
3. The Merchandise Inventory account is debited when goods are purchased for resale and
credited when goods are sold and delivered to customers.
