Question 1

Freight charges that are paid by a buyer are:

Accepted Answer

A)  added to Cost of Goods Sold. 
B)  added to Inventory. 
C)  subtracted from Inventory. 
D)  subtracted from Cost of Goods Sold. 
E)  added to operating expense. 
A)  added to Cost of Goods Sold. 
B)  added to Inventory. 
C)  subtracted from Inventory. 
D)  subtracted from Cost of Goods Sold. 
E)  added to operating expense.

Question 2

Journalize the following transactions using the periodic inventory method.
Nov. 1. Sold $3,400 of inventory for $4,500 to Jany Smith with terms 2/10, n/3.0
Nov. 10 Sold $4,700 of inventory for $6,100 for Owen Corp. with terms 2/15, n/30.
Nov. 12 Received payment in full from Jany Smith for the Nov. 1 sale.
Nov. 15 Granted Owen Corp. an allowance of $800 for Nov. 10 transaction for minor
defects in the goods shipped.
Nov. 20 Received payment in full from Owen Corp. for the Nov. 10 sale.

Accepted Answer

Calculation for Nove

Question 3

A company has total assets of $345,000; total liabilities of $278,000; current assets of $212,000; and current liabilities of $175,000. What is the company's current ratio?

Accepted Answer

The answer of A company has total assets of $345,000;...

Question 4

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

Accepted Answer

A)  0.50 
B)  0.75 
C)  1.00 
D)  1.50 
E)  1.25 
A)  0.50 
B)  0.75 
C)  1.00 
D)  1.50 
E)  1.25

Question 5

A record to keep the amount owed to each supplier is called a(n):

Accepted Answer

A)  accounts receivable subsidiary ledger. 
B)  accounts payable subsidiary ledger. 
C)  transportation ledger. 
D)  general ledger for accounts payable. 
E)  trial balance. 
A)  accounts receivable subsidiary ledger. 
B)  accounts payable subsidiary ledger. 
C)  transportation ledger. 
D)  general ledger for accounts payable. 
E)  trial balance.

Question 6

Wholesalers purchase large quantities of product from manufacturers and then sell the product to retailers.

Accepted Answer

A) True 
 B)False

Question 7

Retailers may buy goods from the manufacturer and then sell the goods to consumers.

Accepted Answer

A) True 
 B)False

Question 8

FOB destination means that title passes at the time of shipment of the product to the buyer from the seller.

Accepted Answer

A) True 
 B)False

Question 9

What accounts are adjusted for any inventory differences that are determined after a physical count is taken?

Accepted Answer

Cost of Go

Question 10

ABC Corporation has received an invoice for $4,500 with terms of 3/15, n/50. If ABC pays the invoice on the seventeenth day, the Cash account will be credited for what value?

Accepted Answer

The answer of ABC Corporation has received an invoice for...

Question 11

A discount offered by a supplier as an inducement for prompt payment of an invoice is called a(n):

Accepted Answer

The answer of A discount offered by a supplier as...

Question 12

Prepare the journal entries in Big's Books to record the following transactions using the perpetual inventory system:
October 1 Big Inc. purchased $5,400 of merchandise on account from Bargain Inc., terms 3/15, n/45,
FOB shipping point. Bargain prepaid the $125 shipping cost and added the amount to the invoice.
October 4 Big sold $950 (cost, $250) of merchandise on account to Wills Corp., terms 2/10
n/45, FOB destination.
October 5 Big paid $25 freight charges to deliver goods to Wills.
October 8 Big returned $600 of the merchandise purchased on October 1 and received a credit.
October 11 Paid Bargain the amount due from the October 1 purchase in full.
October 12 Wills returned $175 (cost, $100) of merchandise from the October 4 sale.
October 13 Received payment in full from Wills for the October 4sale.

Accepted Answer

For Oct. 11 entry: $

Question 13

When a company repays the seller for shipping costs on an FOB shipping transaction, which of the following is true?

Accepted Answer

A)  A purchase discount can still be taken net of the prepaid shipping charges. 
B)  A purchase discount can still be taken on the gross amount of the invoice. 
C)  A purchase discount cannot be taken when shipping charges are prepaid. 
D)  The shipping costs do not affect the invoice cost. 
E)  The shipping costs are not added to the cost of the inventory. 
A)  A purchase discount can still be taken net of the prepaid shipping charges. 
B)  A purchase discount can still be taken on the gross amount of the invoice. 
C)  A purchase discount cannot be taken when shipping charges are prepaid. 
D)  The shipping costs do not affect the invoice cost. 
E)  The shipping costs are not added to the cost of the inventory.

Question 14

An invoice with the credit terms 3/10, n/30 means that the customer has 3 days to take a 10% discount off of the invoice total.

Accepted Answer

A) True 
 B)False

Question 15

Journalize the following transactions using the perpetual inventory method.
Aug. 10 Sold $4,100 of inventory for $5,100 for Oden Corp. with terms 2/15, n/30
Aug. 12 Received payment of $1,000 cash in full from Jany Smith for a July 1 sale
with terms 2/10 n/30
Aug. 15 Granted Oden Corp. an allowance of $400 for Aug. 10 transaction for minor
defects in the goods shipped
Aug. 23 Received payment in full from Oden Corp. for the Aug. 10 sale

Accepted Answer

Calculation for Aug.

Question 16

Calculate Cost of Goods Available for Sale with the following information`:
Beginning Inventory $125,000
Purchases in the period $360,000
Ending Inventory $114,000

Accepted Answer

$125,000 +

Question 17

Given the following information, prepare a Statement of Retained Earnings for Alyson's Corporation for the year ending December 31, 2012.

Accepted Answer

Alyson's Corporation

Question 18

What is the balance sheet form that lists assets above liabilities ?

Accepted Answer

A)  Account form 
B)  Report form 
C)  Alphabetical form 
D)  Liquidity form 
E)  Solvency form 
A)  Account form 
B)  Report form 
C)  Alphabetical form 
D)  Liquidity form 
E)  Solvency form

Question 19

The amount of an invoice is $1,000, with terms 2/10, n30. What is the amount to be paid within the discount period?

Accepted Answer

The answer of The amount of an invoice is $1,000,...

Freight charges that are paid by a buyer are:

A company has total assets of $345,000; total liabilities of $278,000; current assets of $212,000; and current liabilities of $175,000. What is the company's current ratio?

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

A record to keep the amount owed to each supplier is called a(n):

Wholesalers purchase large quantities of product from manufacturers and then sell the product to retailers.

Retailers may buy goods from the manufacturer and then sell the goods to consumers.

FOB destination means that title passes at the time of shipment of the product to the buyer from the seller.

What accounts are adjusted for any inventory differences that are determined after a physical count is taken?

ABC Corporation has received an invoice for $4,500 with terms of 3/15, n/50. If ABC pays the invoice on the seventeenth day, the Cash account will be credited for what value?

A discount offered by a supplier as an inducement for prompt payment of an invoice is called a(n):

When a company repays the seller for shipping costs on an FOB shipping transaction, which of the following is true?

An invoice with the credit terms 3/10, n/30 means that the customer has 3 days to take a 10% discount off of the invoice total.

Calculate Cost of Goods Available for Sale with the following information`: Beginning Inventory $125,000 Purchases in the period $360,000 Ending Inventory $114,000

Given the following information, prepare a Statement of Retained Earnings for Alyson's Corporation for the year ending December 31, 2012.

What is the balance sheet form that lists assets above liabilities ?

The amount of an invoice is $1,000, with terms 2/10, n30. What is the amount to be paid 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

Freight charges that are paid by a buyer are:

A company has total assets of $345,000; total liabilities of $278,000; current assets of $212,000; and current liabilities of $175,000. What is the company's current ratio?

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

A record to keep the amount owed to each supplier is called a(n):

Wholesalers purchase large quantities of product from manufacturers and then sell the product to retailers.

Retailers may buy goods from the manufacturer and then sell the goods to consumers.

FOB destination means that title passes at the time of shipment of the product to the buyer from the seller.

What accounts are adjusted for any inventory differences that are determined after a physical count is taken?

ABC Corporation has received an invoice for $4,500 with terms of 3/15, n/50. If ABC pays the invoice on the seventeenth day, the Cash account will be credited for what value?

A discount offered by a supplier as an inducement for prompt payment of an invoice is called a(n):

When a company repays the seller for shipping costs on an FOB shipping transaction, which of the following is true?

An invoice with the credit terms 3/10, n/30 means that the customer has 3 days to take a 10% discount off of the invoice total.

Calculate Cost of Goods Available for Sale with the following information`: Beginning Inventory $125,000 Purchases in the period $360,000 Ending Inventory $114,000

Given the following information, prepare a Statement of Retained Earnings for Alyson's Corporation for the year ending December 31, 2012.

What is the balance sheet form that lists assets above liabilities ?

The amount of an invoice is $1,000, with terms 2/10, n30. What is the amount to be paid 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