Question 1

The Sassycat Company sells custom dog gear on their website. This would most likely be considered a retail business.

Accepted Answer

A) True 
 B)False

Question 2

The Balance Sheet format that reflects the accounting equation in its layout is the:

Accepted Answer

A) account form. 
B) report form. 
C) equation form. 
D) liquidity form. 
A) account form. 
B) report form. 
C) equation form. 
D) liquidity form.

Question 3

The general public most often buys products from:

Accepted Answer

A) a wholesale business. 
B) a retail business. 
C) a manufacturer. 
D) all of the above. 
A) a wholesale business. 
B) a retail business. 
C) a manufacturer. 
D) all of the above.

Question 4

Woods Company had an inventory balance of $2,600 on January 1. During the accounting period they made purchases of $11,500. The ending inventory balance was $1,250. If Woods Co. uses the periodic inventory system, what is the cost of goods available for sale?

Accepted Answer

A) $2,600 
B) $11,500 
C) $12,850 
D) $14,100 
A) $2,600 
B) $11,500 
C) $12,850 
D) $14,100

Question 5

A company has net sales of $137,000, cost of goods sold of $73,000, operating expenses of $42,000, and other expenses of $1,000. The company's operating income is:

Accepted Answer

A) $21,000. 
B) $64,000. 
C) $63,000. 
D) $22,000. 
A) $21,000. 
B) $64,000. 
C) $63,000. 
D) $22,000.

Question 6

A company has net sales of $213,000, cost of goods sold $83,000, operating expenses of $46,000, and other expenses of $5,000. The company's operating income is:

Accepted Answer

A) $37,000. 
B) $79,000. 
C) $84,000. 
D) $125,000. 
A) $37,000. 
B) $79,000. 
C) $84,000. 
D) $125,000.

Question 7

The entry to record the company's cost of selling merchandise under a perpetual inventory system would be a:

Accepted Answer

A) debit to Accounts Receivable and a credit to Sales. 
B) debit to Inventory and a credit to Cost of Goods Sold. 
C) debit to Cost of Goods Sold and a credit to Inventory. 
D) debit to Cost of Goods Sold and a credit to Sales. 
A) debit to Accounts Receivable and a credit to Sales. 
B) debit to Inventory and a credit to Cost of Goods Sold. 
C) debit to Cost of Goods Sold and a credit to Inventory. 
D) debit to Cost of Goods Sold and a credit to Sales.

Question 8

Which of the following indicates that the shipment is free on board and the seller pays all of the shipping and freight costs?

Accepted Answer

A) Cash on delivery 
B) FOB shipping point 
C) FOB destination 
D) 2/10, n/30 
A) Cash on delivery 
B) FOB shipping point 
C) FOB destination 
D) 2/10, n/30

Question 9

Which of the following characterizes Walmart?

Accepted Answer

A) Walmart both purchases and sells products. 
B) Walmart sells products but doesn't purchase products. 
C) Walmart purchases products but doesn't sell products. 
D) Walmart neither purchases nor sells products. 
A) Walmart both purchases and sells products. 
B) Walmart sells products but doesn't purchase products. 
C) Walmart purchases products but doesn't sell products. 
D) Walmart neither purchases nor sells products.

Question 10

Discounts allowed for customers who pay their invoices early:

Accepted Answer

A) reduce the cost of the purchased inventory. 
B) increase the cost of the purchased inventory. 
C) are called manufacturers' discounts. 
D) are called allowances. 
A) reduce the cost of the purchased inventory. 
B) increase the cost of the purchased inventory. 
C) are called manufacturers' discounts. 
D) are called allowances.

Question 11

A list of credit customers is called a(n):

Accepted Answer

A) Accounts Payable subsidiary ledger. 
B) general ledger. 
C) Accounts Receivable subsidiary ledger. 
D) general journal. 
A) Accounts Payable subsidiary ledger. 
B) general ledger. 
C) Accounts Receivable subsidiary ledger. 
D) general journal.

Question 12

Which of the following indicates that the shipment is free on board and the buyer pays all of the shipping and freight costs?

Accepted Answer

A) Cash on delivery 
B) FOB shipping point 
C) FOB destination 
D) 2/10, n/30 
A) Cash on delivery 
B) FOB shipping point 
C) FOB destination 
D) 2/10, n/30

Question 13

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

Question 14

When a customer returns goods, the merchandiser will NOT:

Accepted Answer

A) Decrease net sales revenue 
B) Decrease Cost of Goods Sold 
C) Increase Accounts Receivable 
D) Increase Inventory 
A) Decrease net sales revenue 
B) Decrease Cost of Goods Sold 
C) Increase Accounts Receivable 
D) Increase Inventory

Question 15

The time period within which an invoice may be paid early to receive a discount is called the:

Accepted Answer

A) credit period. 
B) payment period. 
C) discount period. 
D) cash period. 
A) credit period. 
B) payment period. 
C) discount period. 
D) cash period.

Question 16

If an invoice states 2/10, n/45, the 10 refers to the:

Accepted Answer

A) percent that can be taken for the discount. 
B) days in the discount period. 
C) days in which to pay the bill in full. 
D) percent of the bill that has to be paid in the discount period. 
A) percent that can be taken for the discount. 
B) days in the discount period. 
C) days in which to pay the bill in full. 
D) percent of the bill that has to be paid in the discount period.

Question 17

A company has net sales of $56,500 and a cost of goods sold of $26,200. The company's gross profit percentage is approximately:

Accepted Answer

A) 53.6%. 
B) 46.4%. 
C) 215.6%. 
D) 115.6%. 
A) 53.6%. 
B) 46.4%. 
C) 215.6%. 
D) 115.6%.

Question 18

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. 
A) Accounts Receivable subsidiary ledger. 
B) Accounts Payable subsidiary ledger. 
C) transportation ledger. 
D) general ledger for Accounts Payable.

Question 19

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 20

Caesar Company returned $800 of goods it had purchased from another company. The original invoice was for $4,200, 3/10, n/30. What is the discount if Caesar pays the balance within the discount period?

Accepted Answer

A) $126 
B) $102 
C) $24 
D) $0 
A) $126 
B) $102 
C) $24 
D) $0

The Sassycat Company sells custom dog gear on their website. This would most likely be considered a retail business.

The Balance Sheet format that reflects the accounting equation in its layout is the:

The general public most often buys products from:

Woods Company had an inventory balance of $2,600 on January 1. During the accounting period they made purchases of $11,500. The ending inventory balance was $1,250. If Woods Co. uses the periodic inventory system, what is the cost of goods available for sale?

A company has net sales of $137,000, cost of goods sold of $73,000, operating expenses of $42,000, and other expenses of $1,000. The company's operating income is:

A company has net sales of $213,000, cost of goods sold $83,000, operating expenses of $46,000, and other expenses of $5,000. The company's operating income is:

The entry to record the company's cost of selling merchandise under a perpetual inventory system would be a:

Which of the following indicates that the shipment is free on board and the seller pays all of the shipping and freight costs?

Which of the following characterizes Walmart?

Discounts allowed for customers who pay their invoices early:

A list of credit customers is called a(n):

Which of the following indicates that the shipment is free on board and the buyer pays all of the shipping and freight costs?

A useful tool that updates inventory is the:

When a customer returns goods, the merchandiser will NOT:

The time period within which an invoice may be paid early to receive a discount is called the:

If an invoice states 2/10, n/45, the 10 refers to the:

A company has net sales of $56,500 and a cost of goods sold of $26,200. The company's gross profit percentage is approximately:

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

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

Caesar Company returned $800 of goods it had purchased from another company. The original invoice was for $4,200, 3/10, n/30. What is the discount if Caesar pays the balance within the discount period?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 4: Accounting for a Merchandising Business

The Sassycat Company sells custom dog gear on their website. This would most likely be considered a retail business.

The Balance Sheet format that reflects the accounting equation in its layout is the:

The general public most often buys products from:

Woods Company had an inventory balance of $2,600 on January 1. During the accounting period they made purchases of $11,500. The ending inventory balance was $1,250. If Woods Co. uses the periodic inventory system, what is the cost of goods available for sale?

A company has net sales of $137,000, cost of goods sold of $73,000, operating expenses of $42,000, and other expenses of $1,000. The company's operating income is:

A company has net sales of $213,000, cost of goods sold $83,000, operating expenses of $46,000, and other expenses of $5,000. The company's operating income is:

The entry to record the company's cost of selling merchandise under a perpetual inventory system would be a:

Which of the following indicates that the shipment is free on board and the seller pays all of the shipping and freight costs?

Which of the following characterizes Walmart?

Discounts allowed for customers who pay their invoices early:

A list of credit customers is called a(n):

Which of the following indicates that the shipment is free on board and the buyer pays all of the shipping and freight costs?

A useful tool that updates inventory is the:

When a customer returns goods, the merchandiser will NOT:

The time period within which an invoice may be paid early to receive a discount is called the:

If an invoice states 2/10, n/45, the 10 refers to the:

A company has net sales of $56,500 and a cost of goods sold of $26,200. The company's gross profit percentage is approximately:

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

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

Caesar Company returned $800 of goods it had purchased from another company. The original invoice was for $4,200, 3/10, n/30. What is the discount if Caesar pays the balance within the discount period?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters