Question 1

Under a periodic inventory system, the account used to record transportation charges on incoming merchandise is?

Accepted Answer

The answer of Under a periodic inventory system, the account...

Question 2

Sara, a customer, purchased $500 of merchandise from Tammy's store. Under the perpetual inventory system, Tammy will record a:

Accepted Answer

A)  debit to Accounts Receivable or to Cash for $500. 
B)  credit to Accounts Receivable or to Cash for $500. 
C)  credit to Cost of Goods Sold for $500. 
D)  debit to Sales for $500. 
E)  debit to Inventory for $500. 
A)  debit to Accounts Receivable or to Cash for $500. 
B)  credit to Accounts Receivable or to Cash for $500. 
C)  credit to Cost of Goods Sold for $500. 
D)  debit to Sales for $500. 
E)  debit to Inventory for $500.

Question 3

A debit memorandum is the name of the document that supports the return of the goods to the supplier.

Accepted Answer

A) True 
 B)False

Question 4

Given the following information, prepare a single-step Income Statement for Brandon's Corporation for the year ending December 31, 2012.

Accepted Answer

Brandon's Corporatio

Question 5

What type of income statement do most merchandising businesses prepare ?

Accepted Answer

a multi-st

Question 6

Under the periodic inventory method, when does the company determine the amount of inventory on hand at the end of the period?

Accepted Answer

The amount on invent

Question 7

A journal entry that involves more than two accounts is called a compound journal entry.

Accepted Answer

A) True 
 B)False

Question 8

What type of expense is depreciation of a delivery truck?

Accepted Answer

The answer of What type of expense is depreciation of...

Question 9

A 25-year mortgage with regular monthly principal payments would be listed on the balance sheet as:

Accepted Answer

A)  a current liability only. 
B)  a long-term liability only. 
C)  partly a current liability with the balance listed as a long-term liability. 
D)  a long-term asset. 
E)  a current asset. 
A)  a current liability only. 
B)  a long-term liability only. 
C)  partly a current liability with the balance listed as a long-term liability. 
D)  a long-term asset. 
E)  a current asset.

Question 10

Calculate the gross profit percentage and current ratio for 2013 given the above information.

Accepted Answer

Gross Profit = $(300,800 - 200

Question 11

On the balance sheet, assets are listed in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 12

A buyer debits the shipping charges that they pay for merchandise purchased to inventory under the perpetual inventory system.

Accepted Answer

A) True 
 B)False

Question 13

Cary, a customer of ABC Retail, returned $45 of goods that were purchased on account. Under the perpetual inventory system, the journal entry to record the return by the customer will include a:

Accepted Answer

debit to Sales Retur

Question 14

A company's current ratio increased from 1.23 to 1.45. What does this mean?

Accepted Answer

A)  This means that current assets increased and current liabilities decreased. 
B)  This means that current assets increased and current liabilities increased. 
C)  This means that current assets decreased and current liabilities decreased. 
D)  There is not enough information to explain the increase. 
E)  This means that current assets decreased and current liabilities stayed the same. 
A)  This means that current assets increased and current liabilities decreased. 
B)  This means that current assets increased and current liabilities increased. 
C)  This means that current assets decreased and current liabilities decreased. 
D)  There is not enough information to explain the increase. 
E)  This means that current assets decreased and current liabilities stayed the same.

Question 15

If a company had net sales of $56,000 and gross profit of $33,000, the gross profit percentage would be approximately 59%.

Accepted Answer

A) True 
 B)False

Question 16

Tayler Corporation purchased merchandise from Brandon Corporation for cash. The journal entry for Tayler Corporation under a periodic inventory system will be:

Accepted Answer

A)  debit Inventory; credit Cash. 
B)  debit Purchases; credit Cash. 
C)  debit Inventory; credit Accounts Payable-Brandon Corporation. 
D)  debit Inventory; credit Accounts Receivable-Taylor Corporation. 
E)  debit Purchases, credit Accounts Payable -Brandon Corporation. 
A)  debit Inventory; credit Cash. 
B)  debit Purchases; credit Cash. 
C)  debit Inventory; credit Accounts Payable-Brandon Corporation. 
D)  debit Inventory; credit Accounts Receivable-Taylor Corporation. 
E)  debit Purchases, credit Accounts Payable -Brandon Corporation.

Question 17

If an invoice shows a total of $4,000 with terms 2/10, n/30, the customer may pay $3,920 within 10 days to satisfy the bill.

Accepted Answer

A) True 
 B)False

Question 18

The account Sales Returns and Allowances is debited when items are returned from a customer.

Accepted Answer

A) True 
 B)False

Question 19

Sales is a(n) __________ account.

Accepted Answer

The answer of Sales is a(n) __________ account....

Question 20

Which of the following current ratios would be considered the WORST ratio?

Accepted Answer

A)  1.45 
B)  1.11 
C)  0.88 
D)  0.50 
E)  1.50 
A)  1.45 
B)  1.11 
C)  0.88 
D)  0.50 
E)  1.50

Under a periodic inventory system, the account used to record transportation charges on incoming merchandise is?

Sara, a customer, purchased $500 of merchandise from Tammy's store. Under the perpetual inventory system, Tammy will record a:

A debit memorandum is the name of the document that supports the return of the goods to the supplier.

Given the following information, prepare a single-step Income Statement for Brandon's Corporation for the year ending December 31, 2012.

What type of income statement do most merchandising businesses prepare ?

Under the periodic inventory method, when does the company determine the amount of inventory on hand at the end of the period?

A journal entry that involves more than two accounts is called a compound journal entry.

What type of expense is depreciation of a delivery truck?

A 25-year mortgage with regular monthly principal payments would be listed on the balance sheet as:

Calculate the gross profit percentage and current ratio for 2013 given the above information.

On the balance sheet, assets are listed in alphabetical order.

A buyer debits the shipping charges that they pay for merchandise purchased to inventory under the perpetual inventory system.

Cary, a customer of ABC Retail, returned $45 of goods that were purchased on account. Under the perpetual inventory system, the journal entry to record the return by the customer will include a:

A company's current ratio increased from 1.23 to 1.45. What does this mean?

If a company had net sales of $56,000 and gross profit of $33,000, the gross profit percentage would be approximately 59%.

Tayler Corporation purchased merchandise from Brandon Corporation for cash. The journal entry for Tayler Corporation under a periodic inventory system will be:

If an invoice shows a total of $4,000 with terms 2/10, n/30, the customer may pay $3,920 within 10 days to satisfy the bill.

The account Sales Returns and Allowances is debited when items are returned from a customer.

Sales is a(n) __________ account.

Which of the following current ratios would be considered the WORST ratio?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters

Exam 5: Accounting for a Merchandising Business

Under a periodic inventory system, the account used to record transportation charges on incoming merchandise is?

Sara, a customer, purchased $500 of merchandise from Tammy's store. Under the perpetual inventory system, Tammy will record a:

A debit memorandum is the name of the document that supports the return of the goods to the supplier.

Given the following information, prepare a single-step Income Statement for Brandon's Corporation for the year ending December 31, 2012.

What type of income statement do most merchandising businesses prepare ?

Under the periodic inventory method, when does the company determine the amount of inventory on hand at the end of the period?

A journal entry that involves more than two accounts is called a compound journal entry.

What type of expense is depreciation of a delivery truck?

A 25-year mortgage with regular monthly principal payments would be listed on the balance sheet as:

Calculate the gross profit percentage and current ratio for 2013 given the above information.

On the balance sheet, assets are listed in alphabetical order.

A buyer debits the shipping charges that they pay for merchandise purchased to inventory under the perpetual inventory system.

Cary, a customer of ABC Retail, returned $45 of goods that were purchased on account. Under the perpetual inventory system, the journal entry to record the return by the customer will include a:

A company's current ratio increased from 1.23 to 1.45. What does this mean?

If a company had net sales of $56,000 and gross profit of $33,000, the gross profit percentage would be approximately 59%.

Tayler Corporation purchased merchandise from Brandon Corporation for cash. The journal entry for Tayler Corporation under a periodic inventory system will be:

If an invoice shows a total of $4,000 with terms 2/10, n/30, the customer may pay $3,920 within 10 days to satisfy the bill.

The account Sales Returns and Allowances is debited when items are returned from a customer.

Sales is a(n) __________ account.

Which of the following current ratios would be considered the WORST ratio?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters