Question 1

Income from operations is determined by subtracting total operating expenses from ________________.

Accepted Answer

The answer of Income from operations is determined by subtracting...

Question 2

A buyer would record a payment within the discount period under a perpetual inventory system by crediting

Accepted Answer

A)  Accounts Payable. 
B)  Inventory. 
C)  Purchase Discounts. 
D)  Sales Discounts. 
A)  Accounts Payable. 
B)  Inventory. 
C)  Purchase Discounts. 
D)  Sales Discounts.

Question 3

A perpetual inventory system would likely be used by a(n)

Accepted Answer

A)  automobile dealership. 
B)  hardware store. 
C)  drugstore. 
D)  convenience store. 
A)  automobile dealership. 
B)  hardware store. 
C)  drugstore. 
D)  convenience store.

Question 4

BE 200
Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000. Determine the cost of goods sold.

Accepted Answer

Question 5

Non-operating activities exclude revenues and expenses that result from secondary or auxiliary operations.

Accepted Answer

A) True 
 B)False

Question 6

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that

Accepted Answer

A)  the customer must pay the bill within 10 days. 
B)  the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. 
C)  the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. 
D)  two sales returns can be made within 10 days of the invoice date and no returns thereafter. 
A)  the customer must pay the bill within 10 days. 
B)  the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. 
C)  the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. 
D)  two sales returns can be made within 10 days of the invoice date and no returns thereafter.

Question 7

The following information is available for Hopkins Company:   Instructions
Compute each of the following:
(a) Net purchases
(b) Cost of goods purchased
(c) Cost of goods sold

Accepted Answer

(a) Net purchases = $282000 ($

Question 8

Which one of the following is shown on a multiple-step but not on a single-step income statement?

Accepted Answer

A)  Net sales 
B)  Net income 
C)  Gross profit 
D)  Cost of goods sold 
A)  Net sales 
B)  Net income 
C)  Gross profit 
D)  Cost of goods sold

Question 9

The sales revenue section of an income statement for a retailer would not include

Accepted Answer

A)  Sales discounts. 
B)  Sales revenue. 
C)  Net sales. 
D)  Cost of goods sold. 
A)  Sales discounts. 
B)  Sales revenue. 
C)  Net sales. 
D)  Cost of goods sold.

Question 10

Sales minus operating expenses equals gross profit.

Accepted Answer

A) True 
 B)False

Question 11

During August, 2018, Baxter's Supply Store generated revenues of $60,000. The company's expenses were as follows: cost of goods sold of $36,000 and operating expenses of $4,000. The company also had rent revenue of $1,000 and a gain on the sale of a delivery truck of $2,000. Baxter's non-operating income (loss) for the month of August, 2015 is

Accepted Answer

A)  $0. 
B)  $1,000. 
C)  $2,000. 
D)  $3,000. 
A)  $0. 
B)  $1,000. 
C)  $2,000. 
D)  $3,000.

Question 12

In a perpetual inventory system, cost of goods sold is recorded

Accepted Answer

A)  on a daily basis. 
B)  on a monthly basis. 
C)  on an annual basis. 
D)  with each sale. 
A)  on a daily basis. 
B)  on a monthly basis. 
C)  on an annual basis. 
D)  with each sale.

Question 13

Under GAAP, companies can choose which inventory system?   IFRS.

Accepted Answer

The answer of Under GAAP, companies can choose which inventory...

Question 14

In a perpetual inventory system, the amount of the discount allowed for paying for merchandise purchased within the discount period is credited to

Accepted Answer

A)  Inventory. 
B)  Purchase Discounts. 
C)  Purchase Allowance. 
D)  Sales Discounts. 
A)  Inventory. 
B)  Purchase Discounts. 
C)  Purchase Allowance. 
D)  Sales Discounts.

Question 15

Sales Returns and Allowances and Sales Discounts are both designed to encourage customers to pay their accounts promptly.

Accepted Answer

A) True 
 B)False

Question 16

During the year, Slick's Pet Shop's inventory decreased by $25,000. If the company's cost of goods sold for the year was $500,000, purchases must have been

Accepted Answer

A)  $475,000. 
B)  $500,000. 
C)  $525,000. 
D)  Unable to determine. 
A)  $475,000. 
B)  $500,000. 
C)  $525,000. 
D)  Unable to determine.

Question 17

The following information is available for Moiz Company:   Instructions
Using the above information, prepare the closing entries for Moiz Company.

Accepted Answer

The answer of The following information is available for Moiz...

Question 18

Cost of goods available for sale is computed by adding

Accepted Answer

A)  freight-in to net purchases. 
B)  beginning inventory to net purchases. 
C)  beginning inventory to purchases and freight-in. 
D)  beginning inventory to cost of goods purchased. 
A)  freight-in to net purchases. 
B)  beginning inventory to net purchases. 
C)  beginning inventory to purchases and freight-in. 
D)  beginning inventory to cost of goods purchased.

Question 19

In a periodic inventory system, a return of defective merchandise to a supplier is recorded by crediting

Accepted Answer

A)  Accounts Payable. 
B)  Inventory. 
C)  Purchases. 
D)  Purchase Returns and Allowances. 
A)  Accounts Payable. 
B)  Inventory. 
C)  Purchases. 
D)  Purchase Returns and Allowances.

Question 20

The terms 2/10, n/30 state that a 2% discount is available if the invoice is paid within the first 10 days of the next month.

Accepted Answer

A) True 
 B)False

Income from operations is determined by subtracting total operating expenses from ________________.

A buyer would record a payment within the discount period under a perpetual inventory system by crediting

A perpetual inventory system would likely be used by a(n)

Non-operating activities exclude revenues and expenses that result from secondary or auxiliary operations.

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that

The following information is available for Hopkins Company: Instructions Compute each of the following: (a) Net purchases (b) Cost of goods purchased (c) Cost of goods sold

Which one of the following is shown on a multiple-step but not on a single-step income statement?

The sales revenue section of an income statement for a retailer would not include

Sales minus operating expenses equals gross profit.

In a perpetual inventory system, cost of goods sold is recorded

Under GAAP, companies can choose which inventory system? IFRS.

In a perpetual inventory system, the amount of the discount allowed for paying for merchandise purchased within the discount period is credited to

Sales Returns and Allowances and Sales Discounts are both designed to encourage customers to pay their accounts promptly.

During the year, Slick's Pet Shop's inventory decreased by $25,000. If the company's cost of goods sold for the year was $500,000, purchases must have been

The following information is available for Moiz Company: Instructions Using the above information, prepare the closing entries for Moiz Company.

Cost of goods available for sale is computed by adding

In a periodic inventory system, a return of defective merchandise to a supplier is recorded by crediting

The terms 2/10, n/30 state that a 2% discount is available if the invoice is paid within the first 10 days of the next month.

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

Income from operations is determined by subtracting total operating expenses from ________________.

A buyer would record a payment within the discount period under a perpetual inventory system by crediting

A perpetual inventory system would likely be used by a(n)

Non-operating activities exclude revenues and expenses that result from secondary or auxiliary operations.

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that

The following information is available for Hopkins Company: Instructions Compute each of the following: (a) Net purchases (b) Cost of goods purchased (c) Cost of goods sold

Which one of the following is shown on a multiple-step but not on a single-step income statement?

The sales revenue section of an income statement for a retailer would not include

Sales minus operating expenses equals gross profit.

In a perpetual inventory system, cost of goods sold is recorded

Under GAAP, companies can choose which inventory system? IFRS.

In a perpetual inventory system, the amount of the discount allowed for paying for merchandise purchased within the discount period is credited to

Sales Returns and Allowances and Sales Discounts are both designed to encourage customers to pay their accounts promptly.

During the year, Slick's Pet Shop's inventory decreased by $25,000. If the company's cost of goods sold for the year was $500,000, purchases must have been

The following information is available for Moiz Company: Instructions Using the above information, prepare the closing entries for Moiz Company.

Cost of goods available for sale is computed by adding

In a periodic inventory system, a return of defective merchandise to a supplier is recorded by crediting

The terms 2/10, n/30 state that a 2% discount is available if the invoice is paid within the first 10 days of the next month.

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