Question 1

Which of the following accounts has a normal debit balance?

Accepted Answer

A)  Accounts Payable 
B)  Inventory 
C)  Sales 
D)  Interest Revenue 
A)  Accounts Payable 
B)  Inventory 
C)  Sales 
D)  Interest Revenue

Question 2

President's salaries,depreciation of office furniture,and office supplies are

Accepted Answer

A)  selling expenses 
B)  miscellaneous expenses 
C)  administrative expenses 
D)  inventory expenses 
A)  selling expenses 
B)  miscellaneous expenses 
C)  administrative expenses 
D)  inventory expenses

Question 3

Using the list of accounts below,construct a chart of accounts for a merchandising business that rents out a portion of its building,and assign account numbers and arranging the accounts in balance sheet and income statement order ("1" for assets,and so on).Each account number should have three digits.Contra accounts should be designated with a decimal of the account (100.1 for contra of account 100).Assets and liabilities should be in order of liquidity,expenses should be in alphabetical order.

Accepted Answer

The answer of Using the list of accounts below,construct a...

Question 4

If the ownership of merchandise passes to the buyer when the seller delivers the merchandise for shipment,the terms are stated as FOB destination.

Accepted Answer

A) True 
 B)False

Question 5

When a large quantity of merchandise is purchased,a reduction allowed on the sale price is called a trade discount.

Accepted Answer

A) True 
 B)False

Question 6

In a periodic inventory system,the cost of merchandise purchased includes the cost of freight in.

Accepted Answer

A) True 
 B)False

Question 7

The cost of inventory is limited to the purchase price less any purchase discounts.

Accepted Answer

A) True 
 B)False

Question 8

Merchandise subject to terms 2 / 10,n / 30,FOB shipping point,is sold on account to a customer for $25,000.What is the amount of sales discount allowable?

Accepted Answer

A)  $260 
B)  $500 
C)  $460 
D)  $150 
A)  $260 
B)  $500 
C)  $460 
D)  $150

Question 9

Under the periodic inventory system,the cost of goods sold is equal to the beginning inventory plus the cost of merchandise purchased plus the ending inventory.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)  Inventory 
B)  Accumulated Depreciation 
C)  Dividends 
D)  Cost of Goods Sold 
A)  Inventory 
B)  Accumulated Depreciation 
C)  Dividends 
D)  Cost of Goods Sold

Question 11

In a multiple-step income statement,the dollar amount for income from operations is always the same as net income.

Accepted Answer

A) True 
 B)False

Question 12

Calculate the gross profit for Jonas Company based on the following data:

Accepted Answer

Sales,$764,000 - Cos

Question 13

Which of the following accounts usually has a debit balance?

Accepted Answer

A)  Accounts Payable 
B)  Sales Tax Payable 
C)  Sales 
D)  Inventory 
A)  Accounts Payable 
B)  Sales Tax Payable 
C)  Sales 
D)  Inventory

Question 14

If merchandise sold on account is returned to the seller,the seller acknowledges the return by issuing a

Accepted Answer

A)  sales invoice 
B)  purchase invoice 
C)  credit memo 
D)  debit memo 
A)  sales invoice 
B)  purchase invoice 
C)  credit memo 
D)  debit memo

Question 15

As we compare a merchandising business to a service business,the financial statement that changes the most is the balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

Merchandise is purchased for $6,000 on September 2 subject to terms of 2 / 10,n / 30,FOB destination.Freight costs paid by the seller totaled $200.What is the required payment if paid on September 12?

Accepted Answer

A)  $6,120 
B)  $5,940 
C)  $6,090 
D)  $5,880 
A)  $6,120 
B)  $5,940 
C)  $6,090 
D)  $5,880

Question 17

The most important differences between a service business and a retail business are reflected in their operating cycles and financial statements.

Accepted Answer

A) True 
 B)False

Question 18

What is the term applied to the excess of sales over the cost of goods sold?

Accepted Answer

A)  gross profit 
B)  operations 
C)  net income 
D)  gross sales 
A)  gross profit 
B)  operations 
C)  net income 
D)  gross sales

Question 19

Kaden Co.sells merchandise on credit to Jase Co.for $9,600.The invoice is dated July 15 with terms of 1 / 15,net 45.If Jase Co.chooses not to take the discount,by when should the payment be made?

Accepted Answer

A)  July 30 
B)  August 29 
C)  August 15 
D)  July 25 
A)  July 30 
B)  August 29 
C)  August 15 
D)  July 25

Question 20

Using the following information,what is the cost of goods sold?

Accepted Answer

A)  $32,400 
B)  $32,670 
C)  $31,330 
D)  $38,370 
A)  $32,400 
B)  $32,670 
C)  $31,330 
D)  $38,370

Exam 5: Accounting for Merchandising Businesses

Which of the following accounts has a normal debit balance?

President's salaries,depreciation of office furniture,and office supplies are

If the ownership of merchandise passes to the buyer when the seller delivers the merchandise for shipment,the terms are stated as FOB destination.

When a large quantity of merchandise is purchased,a reduction allowed on the sale price is called a trade discount.

In a periodic inventory system,the cost of merchandise purchased includes the cost of freight in.

The cost of inventory is limited to the purchase price less any purchase discounts.

Merchandise subject to terms 2 / 10,n / 30,FOB shipping point,is sold on account to a customer for $25,000.What is the amount of sales discount allowable?

Under the periodic inventory system,the cost of goods sold is equal to the beginning inventory plus the cost of merchandise purchased plus the ending inventory.

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

In a multiple-step income statement,the dollar amount for income from operations is always the same as net income.

Calculate the gross profit for Jonas Company based on the following data:

Which of the following accounts usually has a debit balance?

If merchandise sold on account is returned to the seller,the seller acknowledges the return by issuing a

As we compare a merchandising business to a service business,the financial statement that changes the most is the balance sheet.

Merchandise is purchased for $6,000 on September 2 subject to terms of 2 / 10,n / 30,FOB destination.Freight costs paid by the seller totaled $200.What is the required payment if paid on September 12?

The most important differences between a service business and a retail business are reflected in their operating cycles and financial statements.

What is the term applied to the excess of sales over the cost of goods sold?

Kaden Co.sells merchandise on credit to Jase Co.for $9,600.The invoice is dated July 15 with terms of 1 / 15,net 45.If Jase Co.chooses not to take the discount,by when should the payment be made?

Using the following information,what is the cost of goods sold?

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