SPECIAL ACCOUNTS AND ENTRIES 173 



45. Why does the entry for the inventory not have to appear 



in any book of original entry? 



46. After closing inventory is properly recorded in an account 



what steps are necessary to complete the closing of the 

 account ? 



47. Discuss the reason for debiting and crediting the same ac- 



count with the inventory value. 



48. How does a natural increase in livestock affect the loss or 



gain of the specific livestock account? 



49. Illustrate the method of making the inventory and closing 



entries in an account that results in a loss. 



50. Under what conditions is it unnecessary to record an inven- 



tory value in an account, although an inventory exists? 

 Why? 



51. What is the procedure in taking and recording a physical 



inventory? 



52. What advantage is there in having a detailed inventory in 



comparative form? 



53. What is the point of contact between the inventory record 



and the account? 



54. How is general expense account affected by inventories? 



55. How is the inventory record used in making the opening 



entries at the time of opening ledger accounts for the 

 first time? 



56. Why are dairy and general equipment kept separate in the 



inventory record and also in the ledger? 



57. How is the value of equipment determined? How is it shown 



in the inventory record? Discuss the advantages of this 

 method of valuation. 



58. Why is it not necessary to find the aggregate total of all 



items listed in the inventory record? 



59. State how taking an inventory is a method of calculating 



depreciation. What method is it called? 



60. What is the straight line method of calculating deprecia- 



tion? Illustrate. 



61. What is the diminishing value method as used on the farm? 



Illustrate. Compare the : two methods. 



