Question 1

A debit memorandum acknowledges the receipt of returned goods from a customer.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

Brickyn's Corporatio

Question 3

Land is an example of what type of asset?

Accepted Answer

Property,

Question 4

Goods that a retailer sells to consumers are classified as inventory.

Accepted Answer

A) True 
 B)False

Question 5

Tammy's General Store has cash sales for the week of $5,000 and credit sales of $3,500. What are the debits and the credits to record the week's sales?

Accepted Answer

Debit Cash for $5,00

Question 6

Who buys goods from retailers?

Accepted Answer

The answer of Who buys goods from retailers?...

Question 7

Sales returns from a customer:

Accepted Answer

A)  increase Cost of Goods Sold. 
B)  increase Revenue. 
C)  decrease Cost of Goods Sold. 
D)  have no effect on Cost of Goods Sold. 
E)  increase operating expenses. 
A)  increase Cost of Goods Sold. 
B)  increase Revenue. 
C)  decrease Cost of Goods Sold. 
D)  have no effect on Cost of Goods Sold. 
E)  increase operating expenses.

Question 8

Advertising and promotion are examples of selling expenses.

Accepted Answer

A) True 
 B)False

Question 9

Costs of Goods Sold includes which of the following?

Accepted Answer

A)  The actual cost of the item 
B)  Administrative fees 
C)  Management salaries 
D)  Depreciation expense 
E)  Selling expense 
A)  The actual cost of the item 
B)  Administrative fees 
C)  Management salaries 
D)  Depreciation expense 
E)  Selling expense

Question 10

What is the current ratio for the current year given the information above? If the current ratio for the previous year was 1.2, was there an improvement or deterioration?

Accepted Answer

Current ratio = $(54,571 + 24,

Question 11

ABC Corporation pays an invoice for $350 in time to take a 3% discount. The journal entry to record the payment of this invoice under a periodic system is:

Accepted Answer

Debit Accounts Payab

Question 12

What happens to the current ratio if current assets decrease and current liabilities increase?

Accepted Answer

Current ra

Question 13

If a company has a current ratio of 0.8, what does this mean ?

Accepted Answer

It means that for every $1 in

Question 14

Sales Discounts and Sales Returns and Allowances are contra-accounts of the Sales account.

Accepted Answer

A) True 
 B)False

Question 15

Calculate Net Sales with the following information: Sales of $400,000, Sales Returns and Allowances of $45,000, and Sales Discounts of $38,000

Accepted Answer

$400,000 -

Question 16

Which financial statement does the Cost of Goods Sold account appear on?

Accepted Answer

the income

Question 17

Under a periodic inventory system, when goods are returned by a customer the inventory account is not adjusted.

Accepted Answer

A) True 
 B)False

Question 18

What is the gross profit ratio for the current year given the information above? If the gross profit ratio for the previous year was 20%, was there an improvement or deterioration?

Accepted Answer

$(505,700-50,700-360,540) / $5

Question 19

Under the perpetual inventory system, the purchase of inventory affects both an asset and the shareholder's equity account.

Accepted Answer

A) True 
 B)False

Question 20

Because of innovative and computerized methods of tracking inventory, most businesses today use the perpetual inventory method.

Accepted Answer

A) True 
 B)False

A debit memorandum acknowledges the receipt of returned goods from a customer.

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

Land is an example of what type of asset?

Goods that a retailer sells to consumers are classified as inventory.

Tammy's General Store has cash sales for the week of $5,000 and credit sales of $3,500. What are the debits and the credits to record the week's sales?

Who buys goods from retailers?

Sales returns from a customer:

Advertising and promotion are examples of selling expenses.

Costs of Goods Sold includes which of the following?

What is the current ratio for the current year given the information above? If the current ratio for the previous year was 1.2, was there an improvement or deterioration?

ABC Corporation pays an invoice for $350 in time to take a 3% discount. The journal entry to record the payment of this invoice under a periodic system is:

What happens to the current ratio if current assets decrease and current liabilities increase?

If a company has a current ratio of 0.8, what does this mean ?

Sales Discounts and Sales Returns and Allowances are contra-accounts of the Sales account.

Calculate Net Sales with the following information: Sales of $400,000, Sales Returns and Allowances of $45,000, and Sales Discounts of $38,000

Which financial statement does the Cost of Goods Sold account appear on?

Under a periodic inventory system, when goods are returned by a customer the inventory account is not adjusted.

What is the gross profit ratio for the current year given the information above? If the gross profit ratio for the previous year was 20%, was there an improvement or deterioration?

Under the perpetual inventory system, the purchase of inventory affects both an asset and the shareholder's equity account.

Because of innovative and computerized methods of tracking inventory, most businesses today use the perpetual inventory method.

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

A debit memorandum acknowledges the receipt of returned goods from a customer.

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

Land is an example of what type of asset?

Goods that a retailer sells to consumers are classified as inventory.

Tammy's General Store has cash sales for the week of $5,000 and credit sales of $3,500. What are the debits and the credits to record the week's sales?

Who buys goods from retailers?

Sales returns from a customer:

Advertising and promotion are examples of selling expenses.

Costs of Goods Sold includes which of the following?

What is the current ratio for the current year given the information above? If the current ratio for the previous year was 1.2, was there an improvement or deterioration?

ABC Corporation pays an invoice for $350 in time to take a 3% discount. The journal entry to record the payment of this invoice under a periodic system is:

What happens to the current ratio if current assets decrease and current liabilities increase?

If a company has a current ratio of 0.8, what does this mean ?

Sales Discounts and Sales Returns and Allowances are contra-accounts of the Sales account.

Calculate Net Sales with the following information: Sales of $400,000, Sales Returns and Allowances of $45,000, and Sales Discounts of $38,000

Which financial statement does the Cost of Goods Sold account appear on?

Under a periodic inventory system, when goods are returned by a customer the inventory account is not adjusted.

What is the gross profit ratio for the current year given the information above? If the gross profit ratio for the previous year was 20%, was there an improvement or deterioration?

Under the perpetual inventory system, the purchase of inventory affects both an asset and the shareholder's equity account.

Because of innovative and computerized methods of tracking inventory, most businesses today use the perpetual inventory method.

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