Question 1

Purchase returns reduce the cost of inventory.

Accepted Answer

A) True 
 B)False

Question 2

What is net income generally also referred to as?

Accepted Answer

the compan

Question 3

Calculate period end Cost of Goods Sold with the following information:
Beginning Inventory $35,000
Purchases $49,000
Purchases Discounts $3,000
Purchases Returns $4,500
Transportation-in $2,000
Ending Inventory $42,000

Accepted Answer

Beginning Inventory 35,000
+ Purchases 4

Question 4

Why is cash listed as the first current asset?

Accepted Answer

It is the

Question 5

If an invoice reads n/15, what does this mean?

Accepted Answer

The compan

Question 6

When merchandise is purchased on account under the perpetual inventory system, the journal entry is:

Accepted Answer

A)  debit Purchases and credit Accounts Payable. 
B)  debit Accounts Payable and credit Inventory. 
C)  debit Inventory and credit Accounts Payable. 
D)  debit Accounts Payable and credit Purchases. 
E)  debit Purchases and credit Cash. 
A)  debit Purchases and credit Accounts Payable. 
B)  debit Accounts Payable and credit Inventory. 
C)  debit Inventory and credit Accounts Payable. 
D)  debit Accounts Payable and credit Purchases. 
E)  debit Purchases and credit Cash.

Question 7

What does the acronym FOB stand for?

Accepted Answer

The answer of What does the acronym FOB stand for?...

Question 8

Inventory for a merchandising business is classified as a(n):

Accepted Answer

A)  liability. 
B)  revenue. 
C)  part of shareholder's equity. 
D)  asset. 
E)  expense. 
A)  liability. 
B)  revenue. 
C)  part of shareholder's equity. 
D)  asset. 
E)  expense.

Question 9

The perpetual inventory system keeps a running record of inventory as it is bought and sold.

Accepted Answer

A) True 
 B)False

Question 10

A useful tool that updates inventory is the:

Accepted Answer

A)  cash register. 
B)  bar code scanner. 
C)  price tag on the merchandise. 
D)  UPC number. 
E)  bar code. 
A)  cash register. 
B)  bar code scanner. 
C)  price tag on the merchandise. 
D)  UPC number. 
E)  bar code.

Question 11

Transferring title refers to a:

Accepted Answer

A)  change of ownership. 
B)  change of buyer. 
C)  change of seller. 
D)  legal document. 
E)  purchase contract. 
A)  change of ownership. 
B)  change of buyer. 
C)  change of seller. 
D)  legal document. 
E)  purchase contract.

Question 12

Journalize the following transactions for Jane Co. assuming the periodic system.
May 7 Jane Co. sold $6,900 of merchandise, costing $5,150 on account to Joan, terms
3/10, n/30 FOB Shipping
May 8 Jane Co. pre-pays $500 of shipping costs and charges Joan.

Accepted Answer

The answer of Journalize the following transactions for Jane Co....

Question 13

Most businesses today use the periodic inventory method.

Accepted Answer

A) True 
 B)False

Question 14

Calculate Cost of Goods Sold with the following information:
Beginning Inventory $135,000
Purchases in the period $400,000
Ending Inventory $145,000

Accepted Answer

$135,000 +

Question 15

Which of the following would NOT be classified as a retailer?

Accepted Answer

A)  Canadian Tire 
B)  H & R Block 
C)  Walmart 
D)  Giant Tiger 
E)  Sears 
A)  Canadian Tire 
B)  H & R Block 
C)  Walmart 
D)  Giant Tiger 
E)  Sears

Question 16

Alpha Company received an invoice from Beta Company for $5,550 with terms of 3/10, n/45 on March 8. If Alpha pays the bill on March 15, what is the journal entry in a periodic system?

Accepted Answer

Debit Accounts Payab

Question 17

Journalize the following transactions for Jill Company using the periodic inventory system.
June 8 Jacob Co. sold $5,500 of merchandise, costing $4,150 on account to Breanne, terms 2/10, n/30.
June 12 Breanne returned $550 of the merchandise, costing $410 to Jacob Company for credit on her account.
June 16 Breanne paid her balance.

Accepted Answer

Calculation for June

Question 18

Debit card and credit card sales are counted as cash transactions.

Accepted Answer

A) True 
 B)False

Question 19

A high gross profit percentage means:

Accepted Answer

A)  the cost of goods sold was relatively low. 
B)  the cost of goods sold was relatively high. 
C)  selling expenses are very low. 
D)  general and administrative expenses are very high. 
E)  selling expenses are very high. 
A)  the cost of goods sold was relatively low. 
B)  the cost of goods sold was relatively high. 
C)  selling expenses are very low. 
D)  general and administrative expenses are very high. 
E)  selling expenses are very high.

Question 20

Jill buys $775 of merchandise on account from Toys Are Fun. Her customer terms are 3/10, n/45. What is the amount of her discount if she pays within the discount period?

Accepted Answer

A)  $77.50. 
B)  $23.25 
C)  $697.50. 
D)  $0. 00. 
A)  $77.50. 
B)  $23.25 
C)  $697.50. 
D)  $0. 00.

Purchase returns reduce the cost of inventory.

What is net income generally also referred to as?

Calculate period end Cost of Goods Sold with the following information: Beginning Inventory $35,000 Purchases $49,000 Purchases Discounts $3,000 Purchases Returns $4,500 Transportation-in $2,000 Ending Inventory $42,000

Why is cash listed as the first current asset?

If an invoice reads n/15, what does this mean?

When merchandise is purchased on account under the perpetual inventory system, the journal entry is:

What does the acronym FOB stand for?

Inventory for a merchandising business is classified as a(n):

The perpetual inventory system keeps a running record of inventory as it is bought and sold.

A useful tool that updates inventory is the:

Transferring title refers to a:

Journalize the following transactions for Jane Co. assuming the periodic system. May 7 Jane Co. sold $6,900 of merchandise, costing $5,150 on account to Joan, terms 3/10, n/30 FOB Shipping May 8 Jane Co. pre-pays $500 of shipping costs and charges Joan.

Most businesses today use the periodic inventory method.

Calculate Cost of Goods Sold with the following information: Beginning Inventory $135,000 Purchases in the period $400,000 Ending Inventory $145,000

Which of the following would NOT be classified as a retailer?

Alpha Company received an invoice from Beta Company for $5,550 with terms of 3/10, n/45 on March 8. If Alpha pays the bill on March 15, what is the journal entry in a periodic system?

Debit card and credit card sales are counted as cash transactions.

A high gross profit percentage means:

Jill buys $775 of merchandise on account from Toys Are Fun. Her customer terms are 3/10, n/45. What is the amount of her discount if she pays within the discount period?

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

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Exam 5: Accounting for a Merchandising Business

Purchase returns reduce the cost of inventory.

What is net income generally also referred to as?

Calculate period end Cost of Goods Sold with the following information: Beginning Inventory $35,000 Purchases $49,000 Purchases Discounts $3,000 Purchases Returns $4,500 Transportation-in $2,000 Ending Inventory $42,000

Why is cash listed as the first current asset?

If an invoice reads n/15, what does this mean?

When merchandise is purchased on account under the perpetual inventory system, the journal entry is:

What does the acronym FOB stand for?

Inventory for a merchandising business is classified as a(n):

The perpetual inventory system keeps a running record of inventory as it is bought and sold.

A useful tool that updates inventory is the:

Transferring title refers to a:

Journalize the following transactions for Jane Co. assuming the periodic system. May 7 Jane Co. sold $6,900 of merchandise, costing $5,150 on account to Joan, terms 3/10, n/30 FOB Shipping May 8 Jane Co. pre-pays $500 of shipping costs and charges Joan.

Most businesses today use the periodic inventory method.

Calculate Cost of Goods Sold with the following information: Beginning Inventory $135,000 Purchases in the period $400,000 Ending Inventory $145,000

Which of the following would NOT be classified as a retailer?

Alpha Company received an invoice from Beta Company for $5,550 with terms of 3/10, n/45 on March 8. If Alpha pays the bill on March 15, what is the journal entry in a periodic system?

Debit card and credit card sales are counted as cash transactions.

A high gross profit percentage means:

Jill buys $775 of merchandise on account from Toys Are Fun. Her customer terms are 3/10, n/45. What is the amount of her discount if she pays within the discount period?

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