Question 1

FOB shipping point means that title passes at the time the product is shipped from the seller.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following credit terms allows a discount of 3% if payment is made within 15 days of the invoice;otherwise,the total amount of the invoice must be paid within 30 days from the date of the invoice?

Accepted Answer

A) 3/15,EOM 
B) 3/EOM,n/30 
C) 3/15,n/30 
D) 15/3,n/30 
A) 3/15,EOM 
B) 3/EOM,n/30 
C) 3/15,n/30 
D) 15/3,n/30

Question 3

Credit terms are determined by the purchaser.

Accepted Answer

A) True 
 B)False

Question 4

A company has net sales of $126,000,cost of goods sold of $72,000,operating expenses of $38,000,and other expenses of $3,000.The company's operating income is:

Accepted Answer

A) $13,000. 
B) $54,000. 
C) $51,000. 
D) $16,000. 
A) $13,000. 
B) $54,000. 
C) $51,000. 
D) $16,000.

Question 5

A company has net sales of $223,000,cost of goods sold $85,000,operating expenses of $54,000,and other expenses of $6,000.The company's operating income is:

Accepted Answer

A) $31,000. 
B) $78,000. 
C) $84,000. 
D) $132,000. 
A) $31,000. 
B) $78,000. 
C) $84,000. 
D) $132,000.

Question 6

Under the perpetual inventory system,the need for a physical count of inventory is eliminated.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) invoice discount. 
B) purchase discount. 
C) early discount. 
D) cash discount. 
A) invoice discount. 
B) purchase discount. 
C) early discount. 
D) cash discount.

Question 8

The Inventory account appears on the:

Accepted Answer

A) Balance Sheet. 
B) Statement of Retained Earnings. 
C) Income Statement. 
D) list of liabilities. 
A) Balance Sheet. 
B) Statement of Retained Earnings. 
C) Income Statement. 
D) list of liabilities.

Question 9

The Balance Sheet format that lists assets above liabilities is the:

Accepted Answer

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

FOB shipping point means that title passes at the time the product is shipped from the seller.

Which of the following credit terms allows a discount of 3% if payment is made within 15 days of the invoice;otherwise,the total amount of the invoice must be paid within 30 days from the date of the invoice?

Credit terms are determined by the purchaser.

A company has net sales of $126,000,cost of goods sold of $72,000,operating expenses of $38,000,and other expenses of $3,000.The company's operating income is:

A company has net sales of $223,000,cost of goods sold $85,000,operating expenses of $54,000,and other expenses of $6,000.The company's operating income is:

Under the perpetual inventory system,the need for a physical count of inventory is eliminated.

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

The Inventory account appears on the:

The Balance Sheet format that lists assets above liabilities is the:

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

Exam 4: Accounting for a Merchandising Business

FOB shipping point means that title passes at the time the product is shipped from the seller.

Which of the following credit terms allows a discount of 3% if payment is made within 15 days of the invoice;otherwise,the total amount of the invoice must be paid within 30 days from the date of the invoice?

Credit terms are determined by the purchaser.

A company has net sales of $126,000,cost of goods sold of $72,000,operating expenses of $38,000,and other expenses of $3,000.The company's operating income is:

A company has net sales of $223,000,cost of goods sold $85,000,operating expenses of $54,000,and other expenses of $6,000.The company's operating income is:

Under the perpetual inventory system,the need for a physical count of inventory is eliminated.

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

The Inventory account appears on the:

The Balance Sheet format that lists assets above liabilities is the:

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