Question 1

Operating expenses are classified into two categories: selling expenses and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 2

FOB shipping or FOB factory means ownership of goods transfers to the buyer at the buyer's place of business.

Accepted Answer

A) True 
 B)False

Question 3

The amount of gross profit for a merchandising business will be the same under both the accrual basis and the cash basis of accounting.

Accepted Answer

A) True 
 B)False

Question 4

Evenflow had the following sales transactions in January.   Prepare journal entries to record these transactions.

Accepted Answer

The answer of Evenflow had the following sales transactions in...

Question 5

Calculate the gross profit ratio for each year. Interpret the ratio for 2017.Comment on whether the gross profit ratio trend is favourable or unfavourable and explain.

Accepted Answer

The answer of Calculate the gross profit ratio for each...

Question 6

The terms 2/10, n/30 means that the seller offers the purchaser a 2% cash discount if the amount is paid in full within 10 days. Otherwise, the full amount is due in 30 days.

Accepted Answer

A) True 
 B)False

Question 7

Y-Mart had sales of $350,000$550,000.

Accepted Answer

A) True 
 B)False

Question 8

Use the information above to prepare a multi-step income statement for the year ended December 31, 2015

Accepted Answer

The answer of Use the information above to prepare a...

Question 9

Businesses normally get a full credit for the goods and services tax (GST)and/orHarmonized Sales Tax (HST)that they have paid.

Accepted Answer

A) True 
 B)False

Question 10

Calculate net sales, gross profit, and gross profit ratio for each of the followingsituations. Round the gross profit ratio figure to the nearest whole percent.   a. Which situation has the highest net sales?b. Which situation has the highest gross profit ratio?

Accepted Answer

The answer of Calculate net sales, gross profit, and gross...

Question 11

In a periodic inventory system, Purchases is a temporary account

Accepted Answer

A) True 
 B)False

Question 12

A perpetual inventory system gives a continuous record of the amount of inventory on hand.

Accepted Answer

A) True 
 B)False

Question 13

Marshalls Retailing now carries the Fabletics yoga pants line of athletic wear. Marshalls needs to ensure that the new line contributes no less to their profit than other clothinglines it carries. The Fabletics line needs to provide a 48.5% gross profit margin percentage. Marshalls buys the Fabletics yoga pants at a cost of $12 per pair.At what price should Marshalls sell the Fabletics Yoga pants?

Accepted Answer

A) $23.30 
B) $6.18 
C) $18.18 
D) $17.82 
E) None of these answers is correct. 
A) $23.30 
B) $6.18 
C) $18.18 
D) $17.82 
E) None of these answers is correct.

Question 14

Provincial sales tax (PST)is normally calculated on the original purchase price plus the goods and services tax (GST)or Harmonized Sales Tax (HST).

Accepted Answer

A) True 
 B)False

Question 15

Credit terms are the listing of the amounts and timing of payments between a buyer anda seller.

Accepted Answer

A) True 
 B)False

Question 16

A merchandising company's operating cycle begins with the sale of merchandise and ends with the collection of cash from the sale.

Accepted Answer

A) True 
 B)False

Question 17

Goods and services tax (GST)or Harmonized Sales Tax (HST)is calculated on the original purchase price plus the provincial sales tax (PST).

Accepted Answer

A) True 
 B)False

Question 18

Y-Mart had net sales of $645,000$200,000.

Accepted Answer

A) True 
 B)False

Question 19

Businesses normally get a full credit for the provincial sales tax (PST)they have paid

Accepted Answer

A) True 
 B)False

Question 20

A perpetual inventory system is able to directly measure shrinkage

Accepted Answer

A) True 
 B)False

Operating expenses are classified into two categories: selling expenses and cost of goods sold.

FOB shipping or FOB factory means ownership of goods transfers to the buyer at the buyer's place of business.

The amount of gross profit for a merchandising business will be the same under both the accrual basis and the cash basis of accounting.

Evenflow had the following sales transactions in January. Prepare journal entries to record these transactions.

Calculate the gross profit ratio for each year. Interpret the ratio for 2017.Comment on whether the gross profit ratio trend is favourable or unfavourable and explain.

The terms 2/10, n/30 means that the seller offers the purchaser a 2% cash discount if the amount is paid in full within 10 days. Otherwise, the full amount is due in 30 days.

Y-Mart had sales of $350,000$550,000.

Use the information above to prepare a multi-step income statement for the year ended December 31, 2015

Businesses normally get a full credit for the goods and services tax (GST)and/orHarmonized Sales Tax (HST)that they have paid.

Calculate net sales, gross profit, and gross profit ratio for each of the followingsituations. Round the gross profit ratio figure to the nearest whole percent. a. Which situation has the highest net sales?b. Which situation has the highest gross profit ratio?

In a periodic inventory system, Purchases is a temporary account

A perpetual inventory system gives a continuous record of the amount of inventory on hand.

Provincial sales tax (PST)is normally calculated on the original purchase price plus the goods and services tax (GST)or Harmonized Sales Tax (HST).

Credit terms are the listing of the amounts and timing of payments between a buyer anda seller.

A merchandising company's operating cycle begins with the sale of merchandise and ends with the collection of cash from the sale.

Goods and services tax (GST)or Harmonized Sales Tax (HST)is calculated on the original purchase price plus the provincial sales tax (PST).

Y-Mart had net sales of $645,000$200,000.

Businesses normally get a full credit for the provincial sales tax (PST)they have paid

A perpetual inventory system is able to directly measure shrinkage

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 5: Accounting for Merchandising Activities

Operating expenses are classified into two categories: selling expenses and cost of goods sold.

FOB shipping or FOB factory means ownership of goods transfers to the buyer at the buyer's place of business.

The amount of gross profit for a merchandising business will be the same under both the accrual basis and the cash basis of accounting.

Evenflow had the following sales transactions in January. Prepare journal entries to record these transactions.

Calculate the gross profit ratio for each year. Interpret the ratio for 2017.Comment on whether the gross profit ratio trend is favourable or unfavourable and explain.

The terms 2/10, n/30 means that the seller offers the purchaser a 2% cash discount if the amount is paid in full within 10 days. Otherwise, the full amount is due in 30 days.

Y-Mart had sales of $350,000$550,000.

Use the information above to prepare a multi-step income statement for the year ended December 31, 2015

Businesses normally get a full credit for the goods and services tax (GST)and/orHarmonized Sales Tax (HST)that they have paid.

Calculate net sales, gross profit, and gross profit ratio for each of the followingsituations. Round the gross profit ratio figure to the nearest whole percent. a. Which situation has the highest net sales?b. Which situation has the highest gross profit ratio?

In a periodic inventory system, Purchases is a temporary account

A perpetual inventory system gives a continuous record of the amount of inventory on hand.

Provincial sales tax (PST)is normally calculated on the original purchase price plus the goods and services tax (GST)or Harmonized Sales Tax (HST).

Credit terms are the listing of the amounts and timing of payments between a buyer anda seller.

A merchandising company's operating cycle begins with the sale of merchandise and ends with the collection of cash from the sale.

Goods and services tax (GST)or Harmonized Sales Tax (HST)is calculated on the original purchase price plus the provincial sales tax (PST).

Y-Mart had net sales of $645,000$200,000.

Businesses normally get a full credit for the provincial sales tax (PST)they have paid

A perpetual inventory system is able to directly measure shrinkage

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters