Question 1

Using a perpetual inventory system,the entry to record the purchase of $30,000 of merchandise on account would include a

Accepted Answer

A)  debit to Accounts Payable 
B)  debit to Inventory 
C)  credit to Inventory 
D)  credit to Sales 
A)  debit to Accounts Payable 
B)  debit to Inventory 
C)  credit to Inventory 
D)  credit to Sales

Question 2

What type of company would normally offer trade discounts to its customers?

Accepted Answer

A)  service companies 
B)  retailers 
C)  wholesalers 
D)  online retailers 
A)  service companies 
B)  retailers 
C)  wholesalers 
D)  online retailers

Question 3

Sales is equal to the cost of goods sold less the gross profit.

Accepted Answer

A) True 
 B)False

Question 4

Most companies will not take a purchase discount,because 1% or 2% discounts are insignificant.

Accepted Answer

A) True 
 B)False

Question 5

Under the periodic inventory system,the journal entry to record the cost of goods sold at the point of sale will include which of the following?

Accepted Answer

A)  none of these 
B)  Cost of Goods Sold 
C)  Inventory 
D)  Purchases 
A)  none of these 
B)  Cost of Goods Sold 
C)  Inventory 
D)  Purchases

Question 6

Estimated Returns Inventory is an account used when adjusting for expected merchandise sales in the next period.

Accepted Answer

A) True 
 B)False

Question 7

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer,the terms are

Accepted Answer

A)  consigned 
B)  n / 30 
C)  FOB shipping point 
D)  FOB destination 
A)  consigned 
B)  n / 30 
C)  FOB shipping point 
D)  FOB destination

Question 8

Using the following information,what is the amount of net income? ​
​

Accepted Answer

A)  $29,510 
B)  $29,960 
C)  $28,310 
D)  $29,350 
A)  $29,510 
B)  $29,960 
C)  $28,310 
D)  $29,350

Question 9

Gross profit is equal to

Accepted Answer

A)  sales plus cost of goods sold 
B)  sales plus selling expenses 
C)  sales less selling expenses 
D)  sales less cost of goods sold 
A)  sales plus cost of goods sold 
B)  sales plus selling expenses 
C)  sales less selling expenses 
D)  sales less cost of goods sold

Question 10

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller,the terms are

Accepted Answer

A)  n / 30 
B)  FOB shipping point 
C)  FOB destination 
D)  consigned 
A)  n / 30 
B)  FOB shipping point 
C)  FOB destination 
D)  consigned

Question 11

Details of a purchase invoice and related credit memo are summarized as follows:
​
   Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period.Determine the following:

Accepted Answer

The answer of Details of a purchase invoice and related...

Question 12

Describe the major differences in preparing the financial statements for a service business and a merchandising business.

Accepted Answer

The answer of Describe the major differences in preparing the...

Question 13

The form of the balance sheet in which assets,liabilities,and stockholders' equity are presented in a downward sequence is called the report form.

Accepted Answer

A) True 
 B)False

Question 14

On March 4,Micro Sales makes $4,850 in sales on bank credit cards which charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day.Journalize the sales and recognition of expense.

Accepted Answer

@#IMG-DLM& The sales are debited to cash

Question 15

Sales to customers who use bank credit cards,such as MasterCard and Visa,are generally treated as

Accepted Answer

A)  sales on account 
B)  sales returns 
C)  cash sales 
D)  sales when the credit card company remits the cash 
A)  sales on account 
B)  sales returns 
C)  cash sales 
D)  sales when the credit card company remits the cash

Question 16

The fees associated with credit card sales are periodically recorded as expenses.

Accepted Answer

A) True 
 B)False

Question 17

In the periodic inventory system,purchases of merchandise for resale are debited to the Purchases account.

Accepted Answer

A) True 
 B)False

Question 18

When the seller offers a sales discount,even if borrowing has to be done,it is generally advantageous for the buyer to pay within the discount period.

Accepted Answer

A) True 
 B)False

Question 19

Where are selling and administrative expenses found on the multiple-step income statement?

Accepted Answer

A)  before gross profit 
B)  after sales and before gross profit 
C)  after net income and before expenses 
D)  after gross profit 
A)  before gross profit 
B)  after sales and before gross profit 
C)  after net income and before expenses 
D)  after gross profit

Question 20

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

Accepted Answer

A)  debit to Bank Credit Card Sales,debit to Credit Card Expense,and a credit to Sales 
B)  debit to Cash and a credit to Sales 
C)  debit to Cash,credit to Credit Card Expense,and a credit to Sales 
D)  debit to Sales,debit to Credit Card Expense,and a credit to Cash 
A)  debit to Bank Credit Card Sales,debit to Credit Card Expense,and a credit to Sales 
B)  debit to Cash and a credit to Sales 
C)  debit to Cash,credit to Credit Card Expense,and a credit to Sales 
D)  debit to Sales,debit to Credit Card Expense,and a credit to Cash

Exam 5: Accounting for Merchandising Businesses

Using a perpetual inventory system,the entry to record the purchase of $30,000 of merchandise on account would include a

What type of company would normally offer trade discounts to its customers?

Sales is equal to the cost of goods sold less the gross profit.

Most companies will not take a purchase discount,because 1% or 2% discounts are insignificant.

Under the periodic inventory system,the journal entry to record the cost of goods sold at the point of sale will include which of the following?

Estimated Returns Inventory is an account used when adjusting for expected merchandise sales in the next period.

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer,the terms are

Using the following information,what is the amount of net income? ​ ​

Gross profit is equal to

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller,the terms are

Details of a purchase invoice and related credit memo are summarized as follows: ​ Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period.Determine the following:

Describe the major differences in preparing the financial statements for a service business and a merchandising business.

The form of the balance sheet in which assets,liabilities,and stockholders' equity are presented in a downward sequence is called the report form.

On March 4,Micro Sales makes $4,850 in sales on bank credit cards which charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day.Journalize the sales and recognition of expense.

Sales to customers who use bank credit cards,such as MasterCard and Visa,are generally treated as

The fees associated with credit card sales are periodically recorded as expenses.

In the periodic inventory system,purchases of merchandise for resale are debited to the Purchases account.

When the seller offers a sales discount,even if borrowing has to be done,it is generally advantageous for the buyer to pay within the discount period.

Where are selling and administrative expenses found on the multiple-step income statement?

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Using the following information,what is the amount of net income?

Details of a purchase invoice and related credit memo are summarized as follows: Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period.Determine the following: