Question 1

In a worksheet, cost of goods sold will be shown in the trial balance (Dr.), adjusted trial balance (Dr.) and income statement (Dr.) columns.

Accepted Answer

A) True 
 B)False

Question 2

Glover Co. returned defective goods costing $5,000 to Mal Company on April 19, for credit. The goods were purchased April 10, on credit, terms 3/10, n/30. The entry by Glover Co. on April 19, in receiving full credit is:

Accepted Answer

The answer of Glover Co. returned defective goods costing $5,000...

Question 3

Under IFRS, companies can apply revaluation to

Accepted Answer

A)  land, buildings, and intangible assets. 
B)  land, buildings, but not intangible assets. 
C)  intangible assets, but not land or buildings. 
D)  no assets.
IFRS. 
A)  land, buildings, and intangible assets. 
B)  land, buildings, but not intangible assets. 
C)  intangible assets, but not land or buildings. 
D)  no assets.
IFRS.

Question 4

All of the following are contra revenue accounts except

Accepted Answer

A)  sales revenue. 
B)  sales allowances. 
C)  sales discounts. 
D)  sales returns. 
A)  sales revenue. 
B)  sales allowances. 
C)  sales discounts. 
D)  sales returns.

Question 5

The gross profit rate is computed by dividing gross profit by

Accepted Answer

A)  cost of goods sold. 
B)  net income. 
C)  net sales. 
D)  sales revenue. 
A)  cost of goods sold. 
B)  net income. 
C)  net sales. 
D)  sales revenue.

Question 6

During October, 2018, Red's Catering Company generated revenues of $14,000. Sales discounts totaled $200 for the month. Expenses were as follows: Cost of goods sold of $7,700 and operating expenses of $2,000.
Calculate (1) gross profit and (2) income from operations for the month.

Accepted Answer

(1) Gross profit: $6

Question 7

The following information is available for Sheldon Leonard Company:   Instructions
Compute each of the following:
(a) Net sales
(b) Gross profit
(c) Income from operations

Accepted Answer

(a) Net sales = $309000 ($3250

Question 8

Under IFRS, companies must classify income statement items by

Accepted Answer

A)  function. 
B)  nature. 
C)  nature or function 
D)  date incurred.
IFRS. 
A)  function. 
B)  nature. 
C)  nature or function 
D)  date incurred.
IFRS.

Question 9

The journal entry to record a credit sale of merchandise is

Accepted Answer

A)  Cash Sales Revenue 
B)  Cash Service Revenue 
C)  Accounts Receivable Service Revenue 
D)  Accounts Receivable Sales Revenue 
A)  Cash Sales Revenue 
B)  Cash Service Revenue 
C)  Accounts Receivable Service Revenue 
D)  Accounts Receivable Sales Revenue

Question 10

Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller.

Accepted Answer

A) True 
 B)False

Question 11

Inventory on hand can be obtained from detailed inventory records when a ________________ inventory system is maintained.

Accepted Answer

The answer of Inventory on hand can be obtained from...

Question 12

In a multiple-step income statement, income from operations excludes other revenues and gains and other expenses and losses.

Accepted Answer

A) True 
 B)False

Question 13

If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sales

Accepted Answer

A)  discount. 
B)  return. 
C)  contra asset. 
D)  allowance. 
A)  discount. 
B)  return. 
C)  contra asset. 
D)  allowance.

Question 14

During 2018, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker's gross profit is

Accepted Answer

A)  $24,000. 
B)  $27,000. 
C)  $45,000. 
D)  $90,000. 
A)  $24,000. 
B)  $27,000. 
C)  $45,000. 
D)  $90,000.

Question 15

In accounting for inventory, companies

Accepted Answer

A)  cannot use the periodic inventory system under GAAP. 
B)  cannot use the periodic inventory system under IFRS. 
C)  cannot use the perpetual system under IFRS. 
D)  can use both periodic and perpetual inventory systems under GAAP and IFRS.
IFRS. 
A)  cannot use the periodic inventory system under GAAP. 
B)  cannot use the periodic inventory system under IFRS. 
C)  cannot use the perpetual system under IFRS. 
D)  can use both periodic and perpetual inventory systems under GAAP and IFRS.
IFRS.

Question 16

Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system?

Accepted Answer

A)  Cash received on account with a discount 
B)  Payment of freight costs on a purchase 
C)  Return of merchandise sold 
D)  Sale of merchandise on credit 
A)  Cash received on account with a discount 
B)  Payment of freight costs on a purchase 
C)  Return of merchandise sold 
D)  Sale of merchandise on credit

Question 17

Detailed records of goods held for resale are not maintained under a

Accepted Answer

A)  perpetual inventory system. 
B)  periodic inventory system. 
C)  double entry accounting system. 
D)  single entry accounting system. 
A)  perpetual inventory system. 
B)  periodic inventory system. 
C)  double entry accounting system. 
D)  single entry accounting system.

Question 18

Sales revenues are recognized during the period cash is collected from the buyer.

Accepted Answer

A) True 
 B)False

Question 19

If a company has sales revenue of $630,000, net sales of $600,000, and cost of goods sold of $390,000, the gross profit rate is

Accepted Answer

A)  35%. 
B)  38% 
C)  62%. 
D)  65%. 
A)  35%. 
B)  38% 
C)  62%. 
D)  65%.

Question 20

The Inventory account balance appearing in a perpetual inventory worksheet represents the

Accepted Answer

A)  ending inventory. 
B)  beginning inventory. 
C)  cost of merchandise purchased. 
D)  cost of merchandise sold. 
A)  ending inventory. 
B)  beginning inventory. 
C)  cost of merchandise purchased. 
D)  cost of merchandise sold.

In a worksheet, cost of goods sold will be shown in the trial balance (Dr.), adjusted trial balance (Dr.) and income statement (Dr.) columns.

Glover Co. returned defective goods costing $5,000 to Mal Company on April 19, for credit. The goods were purchased April 10, on credit, terms 3/10, n/30. The entry by Glover Co. on April 19, in receiving full credit is:

Under IFRS, companies can apply revaluation to

All of the following are contra revenue accounts except

The gross profit rate is computed by dividing gross profit by

During October, 2018, Red's Catering Company generated revenues of $14,000. Sales discounts totaled $200 for the month. Expenses were as follows: Cost of goods sold of $7,700 and operating expenses of $2,000. Calculate (1) gross profit and (2) income from operations for the month.

The following information is available for Sheldon Leonard Company: Instructions Compute each of the following: (a) Net sales (b) Gross profit (c) Income from operations

Under IFRS, companies must classify income statement items by

The journal entry to record a credit sale of merchandise is

Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller.

Inventory on hand can be obtained from detailed inventory records when a ________________ inventory system is maintained.

In a multiple-step income statement, income from operations excludes other revenues and gains and other expenses and losses.

If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sales

During 2018, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker's gross profit is

In accounting for inventory, companies

Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system?

Detailed records of goods held for resale are not maintained under a

Sales revenues are recognized during the period cash is collected from the buyer.

If a company has sales revenue of $630,000, net sales of $600,000, and cost of goods sold of $390,000, the gross profit rate is

The Inventory account balance appearing in a perpetual inventory worksheet represents the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

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Exam 5: Accounting for Merchandising Operations

In a worksheet, cost of goods sold will be shown in the trial balance (Dr.), adjusted trial balance (Dr.) and income statement (Dr.) columns.

Glover Co. returned defective goods costing $5,000 to Mal Company on April 19, for credit. The goods were purchased April 10, on credit, terms 3/10, n/30. The entry by Glover Co. on April 19, in receiving full credit is:

Under IFRS, companies can apply revaluation to

All of the following are contra revenue accounts except

The gross profit rate is computed by dividing gross profit by

During October, 2018, Red's Catering Company generated revenues of $14,000. Sales discounts totaled $200 for the month. Expenses were as follows: Cost of goods sold of $7,700 and operating expenses of $2,000. Calculate (1) gross profit and (2) income from operations for the month.

The following information is available for Sheldon Leonard Company: Instructions Compute each of the following: (a) Net sales (b) Gross profit (c) Income from operations

Under IFRS, companies must classify income statement items by

The journal entry to record a credit sale of merchandise is

Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller.

Inventory on hand can be obtained from detailed inventory records when a ________________ inventory system is maintained.

In a multiple-step income statement, income from operations excludes other revenues and gains and other expenses and losses.

If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sales

During 2018, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker's gross profit is

In accounting for inventory, companies

Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system?

Detailed records of goods held for resale are not maintained under a

Sales revenues are recognized during the period cash is collected from the buyer.

If a company has sales revenue of $630,000, net sales of $600,000, and cost of goods sold of $390,000, the gross profit rate is

The Inventory account balance appearing in a perpetual inventory worksheet represents the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters