Question 1

An entry that has more than one debit and/or credit is called a:

Accepted Answer

A) double entry. 
B) compound entry. 
C) multiple-step entry. 
D) special entry. 
A) double entry. 
B) compound entry. 
C) multiple-step entry. 
D) special entry. B

Question 2

A retailer sells goods to a wholesaler.

Accepted Answer

A) True 
 B)False  False

Question 3

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. 
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. A

Question 4

If a company had net sales of $56,000,gross profit of $33,000,and net income of $8,000,the gross profit percentage would be approximately 59%.

Accepted Answer

A) True 
 B)False

Question 5

Under a perpetual inventory system,the account to which transportation charges on incoming merchandise is generally entered is:

Accepted Answer

A) Inventory. 
B) FOB shipping. 
C) FOB destination. 
D) Delivery Expense. 
A) Inventory. 
B) FOB shipping. 
C) FOB destination. 
D) Delivery Expense.

Question 6

Kramer and Associates has the following account balances listed in alphabetical order: Accumulated Depreciation,$23,000;Accounts Payable,$8,500,Accounts Receivable,$12,000;Cash,$3,500;Equipment,$44,000,Land,$21,000,Mortgage Payable,$45,000;Prepaid Insurance,$7,500;Supplies,$2,000;Unearned Revenue,$6,000;Wages payable,$4,500.Kramer and Associates' current assets are:

Accepted Answer

A) $15,500. 
B) $25,000. 
C) $17,500. 
D) $67,000. 
A) $15,500. 
B) $25,000. 
C) $17,500. 
D) $67,000.

Question 7

Which of the following accounts is NOT used to account for merchandise sales transactions?

Accepted Answer

A) Accounts Payable 
B) Accounts Receivable 
C) Sales Discounts 
D) Sales Returns and Allowances 
A) Accounts Payable 
B) Accounts Receivable 
C) Sales Discounts 
D) Sales Returns and Allowances

Question 8

Gross profit percentage is computed by dividing net sales by cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 9

Woods Company had an inventory balance of $3,500 on January 1.During the accounting period they made purchases of $11,500.The ending inventory balance was $2,250.If Woods Co.uses the periodic inventory system,what is the cost of goods available for sale?

Accepted Answer

A) $3,500 
B) $11,500 
C) $12,750 
D) $15,000 
A) $3,500 
B) $11,500 
C) $12,750 
D) $15,000

Question 10

When a merchandiser sells on account,which of the following accounts is NOT needed to record the transaction?

Accepted Answer

A) Cost of Goods Sold 
B) Accounts Receivable 
C) Inventory 
D) Cash 
A) Cost of Goods Sold 
B) Accounts Receivable 
C) Inventory 
D) Cash

Question 11

The net income percentage is computed by dividing net income by gross profit.

Accepted Answer

A) True 
 B)False

Question 12

When a retailer sells merchandise on account,the general entry for the sale's price would be:

Accepted Answer

A) debiting Accounts Receivable and crediting Sales. 
B) debiting Accounts Receivable and crediting Inventory. 
C) debiting Accounts Receivable and crediting Cost of Goods Sold. 
D) debiting Cost of Goods Sold and crediting Sales. 
A) debiting Accounts Receivable and crediting Sales. 
B) debiting Accounts Receivable and crediting Inventory. 
C) debiting Accounts Receivable and crediting Cost of Goods Sold. 
D) debiting Cost of Goods Sold and crediting Sales.

Question 13

Goods that a retailer has available to sell to its customers are classified as inventory.

Accepted Answer

A) True 
 B)False

Question 14

Northshore Equipment,Inc.purchases $3,500 of inventory on account from Aspen,Co.The journal entry to record this purchase for Northshore Equipment under a perpetual inventory system is:

Accepted Answer

A) debit Inventory;credit Cash. 
B) debit Accounts Payable-Aspen;credit Inventory. 
C) debit Inventory;credit Accounts Payable-Northshore Equipment. 
D) debit Inventory;credit Accounts Payable-Aspen. 
A) debit Inventory;credit Cash. 
B) debit Accounts Payable-Aspen;credit Inventory. 
C) debit Inventory;credit Accounts Payable-Northshore Equipment. 
D) debit Inventory;credit Accounts Payable-Aspen.

Question 15

A company has net sales of $126,000,cost of goods sold of $72,000,and operating expenses of $41,000.The company's net income percentage is approximately:

Accepted Answer

A) 0)241. 
B) 0)429. 
C) 0)103. 
D) 0)127. 
A) 0)241. 
B) 0)429. 
C) 0)103. 
D) 0)127.

Question 16

Physical inventory counts must be done:

Accepted Answer

A) when using the periodic system of inventory. 
B) when using bar code scan technology. 
C) when using the perpetual system of inventory. 
D) regardless of inventory system. 
A) when using the periodic system of inventory. 
B) when using bar code scan technology. 
C) when using the perpetual system of inventory. 
D) regardless of inventory system.

Question 17

If an invoice states 5/15,n/60,the 15 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 18

A 10-year note payable to be repaid in equal payments throughout the 10-year period,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. 
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.

Question 19

Cash is listed as the first current asset because it is the account:

Accepted Answer

A) with the most value. 
B) that is most liquid. 
C) that is most used. 
D) that is first alphabetically. 
A) with the most value. 
B) that is most liquid. 
C) that is most used. 
D) that is first alphabetically.

Question 20

The general public is referred to as:

Accepted Answer

A) final consumers. 
B) service customers. 
C) retail customers. 
D) manufacturing customers. 
A) final consumers. 
B) service customers. 
C) retail customers. 
D) manufacturing customers.

An entry that has more than one debit and/or credit is called a:

A retailer sells goods to a wholesaler.

A high gross profit percentage means:

If a company had net sales of $56,000,gross profit of $33,000,and net income of $8,000,the gross profit percentage would be approximately 59%.

Under a perpetual inventory system,the account to which transportation charges on incoming merchandise is generally entered is:

Which of the following accounts is NOT used to account for merchandise sales transactions?

Gross profit percentage is computed by dividing net sales by cost of goods sold.

Woods Company had an inventory balance of $3,500 on January 1.During the accounting period they made purchases of $11,500.The ending inventory balance was $2,250.If Woods Co.uses the periodic inventory system,what is the cost of goods available for sale?

When a merchandiser sells on account,which of the following accounts is NOT needed to record the transaction?

The net income percentage is computed by dividing net income by gross profit.

When a retailer sells merchandise on account,the general entry for the sale's price would be:

Goods that a retailer has available to sell to its customers are classified as inventory.

Northshore Equipment,Inc.purchases $3,500 of inventory on account from Aspen,Co.The journal entry to record this purchase for Northshore Equipment under a perpetual inventory system is:

A company has net sales of $126,000,cost of goods sold of $72,000,and operating expenses of $41,000.The company's net income percentage is approximately:

Physical inventory counts must be done:

If an invoice states 5/15,n/60,the 15 refers to the:

A 10-year note payable to be repaid in equal payments throughout the 10-year period,would be listed on the Balance Sheet as:

Cash is listed as the first current asset because it is the account:

The general public is referred to as:

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

An entry that has more than one debit and/or credit is called a:

A retailer sells goods to a wholesaler.

A high gross profit percentage means:

If a company had net sales of $56,000,gross profit of $33,000,and net income of $8,000,the gross profit percentage would be approximately 59%.

Under a perpetual inventory system,the account to which transportation charges on incoming merchandise is generally entered is:

Which of the following accounts is NOT used to account for merchandise sales transactions?

Gross profit percentage is computed by dividing net sales by cost of goods sold.

Woods Company had an inventory balance of $3,500 on January 1.During the accounting period they made purchases of $11,500.The ending inventory balance was $2,250.If Woods Co.uses the periodic inventory system,what is the cost of goods available for sale?

When a merchandiser sells on account,which of the following accounts is NOT needed to record the transaction?

The net income percentage is computed by dividing net income by gross profit.

When a retailer sells merchandise on account,the general entry for the sale's price would be:

Goods that a retailer has available to sell to its customers are classified as inventory.

Northshore Equipment,Inc.purchases $3,500 of inventory on account from Aspen,Co.The journal entry to record this purchase for Northshore Equipment under a perpetual inventory system is:

A company has net sales of $126,000,cost of goods sold of $72,000,and operating expenses of $41,000.The company's net income percentage is approximately:

Physical inventory counts must be done:

If an invoice states 5/15,n/60,the 15 refers to the:

A 10-year note payable to be repaid in equal payments throughout the 10-year period,would be listed on the Balance Sheet as:

Cash is listed as the first current asset because it is the account:

The general public is referred to as:

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