Question 1

If an invoice reads 2/10,n/30,the 10 refers to the percent that can be taken for the discount.

Accepted Answer

A) True 
 B)False

Question 2

A company pays an invoice early and takes 4% off of the original invoice price.The account to be credited for this amount under a perpetual inventory system is:

Accepted Answer

A) Inventory. 
B) Accounts Payable. 
C) Discount. 
D) Cash. 
A) Inventory. 
B) Accounts Payable. 
C) Discount. 
D) Cash.

Question 3

Under the perpetual inventory system,the account to which purchased goods are recorded is:

Accepted Answer

A) Purchases as a credit. 
B) Inventory as a debit. 
C) Cost of Goods Sold as a debit. 
D) Purchases as a debit. 
A) Purchases as a credit. 
B) Inventory as a debit. 
C) Cost of Goods Sold as a debit. 
D) Purchases as a debit.

Question 4

If there is a difference between the physical count and the perpetual record,the account in which the difference is recorded is:

Accepted Answer

A) Sales. 
B) Cost of Goods Sold. 
C) Inventory Expense. 
D) Revenue. 
A) Sales. 
B) Cost of Goods Sold. 
C) Inventory Expense. 
D) Revenue.

Question 5

Sales is a(n)________ account.

Accepted Answer

A) asset 
B) liability 
C) revenue 
D) contra- 
A) asset 
B) liability 
C) revenue 
D) contra-

Question 6

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 7

The amount of an invoice is $1000,with terms 2/10,n30.The amount to be paid within the discount period is:

Accepted Answer

A) $1,000. 
B) $980. 
C) $900. 
D) $700. 
A) $1,000. 
B) $980. 
C) $900. 
D) $700.

Question 8

In the perpetual inventory system,inventory is constantly updated through the inventory tracking system.

Accepted Answer

A) True 
 B)False

Question 9

Archer Manufacturing had sales for the week of $3,569,of which $2,900 was on credit and $659 in cash sales.The cost of the merchandise sold was $1,888.The journal entries would include a:

Accepted Answer

A) debit to Cost of Goods Sold for $1,888;credit to Inventory for $1,888. 
B) debit to Cash for $3569,credit to Sales for $3,569. 
C) debit to Cash for $3,569 and a credit to Cost of Goods Sold for $3,569. 
D) debit to Cost of Goods Sold for $1,888;credit to Sales of $1,888. 
A) debit to Cost of Goods Sold for $1,888;credit to Inventory for $1,888. 
B) debit to Cash for $3569,credit to Sales for $3,569. 
C) debit to Cash for $3,569 and a credit to Cost of Goods Sold for $3,569. 
D) debit to Cost of Goods Sold for $1,888;credit to Sales of $1,888.

Question 10

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 11

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' long-term assets are:

Accepted Answer

A) $90,000. 
B) $25,000. 
C) $42,000. 
D) $65,000. 
A) $90,000. 
B) $25,000. 
C) $42,000. 
D) $65,000.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The purchase of inventory affects both an asset and the Stockholders' Equity account.

Accepted Answer

A) True 
 B)False

Question 14

Under the perpetual inventory system,purchases are entered into the asset account,Inventory,at the:

Accepted Answer

A) time of purchase. 
B) time of sale to consumers. 
C) time of the inventory count. 
D) end of the accounting period. 
A) time of purchase. 
B) time of sale to consumers. 
C) time of the inventory count. 
D) end of the accounting period.

Question 15

If a company has net sales of $134,000,gross profit of $48,000,and $14,000 net income.The gross profit percentage would be approximately 36%.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following characterizes Best Buy?

Accepted Answer

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

Question 17

Net Sales minus Cost of Goods Sold equals Gross Profit.

Accepted Answer

A) True 
 B)False

Question 18

A company's gross profit percentage decreases from 58% to 51%.What does this mean?

Accepted Answer

A) This means that net income will be higher. 
B) This means that net income will be lower. 
C) This means that there will be a net loss. 
D) We cannot determine anything definite from the information given. 
A) This means that net income will be higher. 
B) This means that net income will be lower. 
C) This means that there will be a net loss. 
D) We cannot determine anything definite from the information given.

Question 19

Cost of Goods Sold is the account that is matched with the Sales account to record the company's cost of the inventory that was sold under a perpetual inventory system.

Accepted Answer

A) True 
 B)False

Question 20

Simmons,Inc.received an invoice from Wilson Company for $5,550 with terms of 3/10,n/45 on March 8.If Simmons pays the bill on March 15,they will credit inventory under a perpetual inventory system for:

Accepted Answer

A) $0.00. 
B) $555.00. 
C) $166.50. 
D) $5550.00. 
A) $0.00. 
B) $555.00. 
C) $166.50. 
D) $5550.00.

If an invoice reads 2/10,n/30,the 10 refers to the percent that can be taken for the discount.

A company pays an invoice early and takes 4% off of the original invoice price.The account to be credited for this amount under a perpetual inventory system is:

Under the perpetual inventory system,the account to which purchased goods are recorded is:

If there is a difference between the physical count and the perpetual record,the account in which the difference is recorded is:

Sales is a(n)________ account.

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

The amount of an invoice is $1000,with terms 2/10,n30.The amount to be paid within the discount period is:

In the perpetual inventory system,inventory is constantly updated through the inventory tracking system.

Archer Manufacturing had sales for the week of $3,569,of which $2,900 was on credit and $659 in cash sales.The cost of the merchandise sold was $1,888.The journal entries would include a:

The general public most often buys products from:

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

The purchase of inventory affects both an asset and the Stockholders' Equity account.

Under the perpetual inventory system,purchases are entered into the asset account,Inventory,at the:

If a company has net sales of $134,000,gross profit of $48,000,and $14,000 net income.The gross profit percentage would be approximately 36%.

Which of the following characterizes Best Buy?

Net Sales minus Cost of Goods Sold equals Gross Profit.

A company's gross profit percentage decreases from 58% to 51%.What does this mean?

Cost of Goods Sold is the account that is matched with the Sales account to record the company's cost of the inventory that was sold under a perpetual inventory system.

Simmons,Inc.received an invoice from Wilson Company for $5,550 with terms of 3/10,n/45 on March 8.If Simmons pays the bill on March 15,they will credit inventory under a perpetual inventory system for:

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

If an invoice reads 2/10,n/30,the 10 refers to the percent that can be taken for the discount.

A company pays an invoice early and takes 4% off of the original invoice price.The account to be credited for this amount under a perpetual inventory system is:

Under the perpetual inventory system,the account to which purchased goods are recorded is:

If there is a difference between the physical count and the perpetual record,the account in which the difference is recorded is:

Sales is a(n)________ account.

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

The amount of an invoice is $1000,with terms 2/10,n30.The amount to be paid within the discount period is:

In the perpetual inventory system,inventory is constantly updated through the inventory tracking system.

Archer Manufacturing had sales for the week of $3,569,of which $2,900 was on credit and $659 in cash sales.The cost of the merchandise sold was $1,888.The journal entries would include a:

The general public most often buys products from:

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

The purchase of inventory affects both an asset and the Stockholders' Equity account.

Under the perpetual inventory system,purchases are entered into the asset account,Inventory,at the:

If a company has net sales of $134,000,gross profit of $48,000,and $14,000 net income.The gross profit percentage would be approximately 36%.

Which of the following characterizes Best Buy?

Net Sales minus Cost of Goods Sold equals Gross Profit.

A company's gross profit percentage decreases from 58% to 51%.What does this mean?

Cost of Goods Sold is the account that is matched with the Sales account to record the company's cost of the inventory that was sold under a perpetual inventory system.

Simmons,Inc.received an invoice from Wilson Company for $5,550 with terms of 3/10,n/45 on March 8.If Simmons pays the bill on March 15,they will credit inventory under a perpetual inventory system for:

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