Question 1

A payment of dividends decreases which section on the statement of cash flows?

Accepted Answer

A) Operating activities 
B) Investing activities 
C) Financing activities 
D) None of these 
A) Operating activities 
B) Investing activities 
C) Financing activities 
D) None of these C

Question 2

Which of the following is NOT a subsection in a multiple-step income statement?

Accepted Answer

A) Purchase discounts 
B) Gross profit 
C) Operating income 
D) Income before taxes 
A) Purchase discounts 
B) Gross profit 
C) Operating income 
D) Income before taxes A

Question 3

Interest expense is an example of an expense classified under "other expense."

Accepted Answer

A) True 
 B)False  True

Question 4

Merchandise is ordered on November 12;the merchandise is shipped by the seller and the invoice is prepared,dated,and mailed by the seller on November 15;the merchandise is received by the buyer on November 17;the transaction is recorded in the seller's accounts on November 15.If the credit terms are 1/10,n/30,the credit period begins with what date?

Accepted Answer

A) November 12 
B) November 15 
C) November 17 
D) November 22 
A) November 12 
B) November 15 
C) November 17 
D) November 22

Question 5

When purchases of merchandise are made for cash,the transaction

Accepted Answer

A) increases Cash;decreases Merchandise Inventory. 
B) increases Merchandise Inventory;decreases Cash. 
C) increases Merchandise Inventory;decreases Cash Discounts. 
D) increases Merchandise Inventory;decreases Purchases. 
A) increases Cash;decreases Merchandise Inventory. 
B) increases Merchandise Inventory;decreases Cash. 
C) increases Merchandise Inventory;decreases Cash Discounts. 
D) increases Merchandise Inventory;decreases Purchases.

Question 6

In a multiple-step income statement,sales will be reduced by sales discounts and sales returns and allowances to arrive at net sales.

Accepted Answer

A) True 
 B)False

Question 7

Based on the following data,determine the cost of merchandise sold for October.

Accepted Answer

Cost of me

Question 8

Which of the following businesses is a merchandising business?

Accepted Answer

A) H&R Block 
B) Becker Law Office 
C) Little Tykes Daycare 
D) Kohl's 
A) H&R Block 
B) Becker Law Office 
C) Little Tykes Daycare 
D) Kohl's

Question 9

Which of the following are subtracted from sales to arrive at net sales?

Accepted Answer

A) Sales returns 
B) Merchandise inventory 
C) Accounts receivable 
D) Cost of merchandise sold 
A) Sales returns 
B) Merchandise inventory 
C) Accounts receivable 
D) Cost of merchandise sold

Question 10

Merchandise is ordered on November 12;the merchandise is shipped by the seller and the invoice is prepared,dated,and mailed by the seller on November 15;the merchandise is received by the buyer on November 17;the transaction is recorded in the buyer's accounts on November 18.The credit period begins with what date?

Accepted Answer

A) November 12 
B) November 15 
C) November 17 
D) November 18 
A) November 12 
B) November 15 
C) November 17 
D) November 18

Question 11

Gross profit is determined by subtracting the cost of merchandise sold from what?

Accepted Answer

A) The cost of merchandise purchased 
B) Fees earned 
C) Accounts receivable 
D) Net sales 
A) The cost of merchandise purchased 
B) Fees earned 
C) Accounts receivable 
D) Net sales

Question 12

The following data for the year ended June 30,2010,were extracted from the accounting records of Roof Co.:
   
Prepare a multiple-step income statement for the current year ended June 30,2010.

Accepted Answer

The answer of The following data for the year ended...

Question 13

Purchases discounts are discounts given to the seller.

Accepted Answer

A) True 
 B)False

Question 14

Based on the following information,what would be recorded as purchases discount if the invoice is paid within the discount period?

Accepted Answer

A) $100 
B) $30 
C) $43 
D) $33 
A) $100 
B) $30 
C) $43 
D) $33

Question 15

Which of the following statements is true?

Accepted Answer

A) The revenue activities of a service business involve providing services to customers. 
B) The revenue activities of a merchandising business involve the building of a product. 
C) The revenue activities of a service business involve the building of a product. 
D) The revenue activities of a merchandising business involve providing services to customers. 
A) The revenue activities of a service business involve providing services to customers. 
B) The revenue activities of a merchandising business involve the building of a product. 
C) The revenue activities of a service business involve the building of a product. 
D) The revenue activities of a merchandising business involve providing services to customers.

Question 16

Sometimes a(n)__________ is offered to buyers as a means of encouraging them to pay before the end of the credit period.

Accepted Answer

A) accounts receivable 
B) credit card 
C) sales discount 
D) cash sale 
A) accounts receivable 
B) credit card 
C) sales discount 
D) cash sale

Question 17

Operating expenses are subtracted from fees earned for a service business and from gross profit for a merchandising business.

Accepted Answer

A) True 
 B)False

Question 18

NBC Company had $32,000 in net sales,$15,000 in cost of merchandise sold,$18,000 in operating expenses,and $2,000 in other income.What is NBC Company's gross profit?

Accepted Answer

A) $17,000 
B) $3,000 
C) $1,000 
D) ($1,000) 
A) $17,000 
B) $3,000 
C) $1,000 
D) ($1,000)

Question 19

Which of the following accounts is a contra account to Sales?

Accepted Answer

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

Question 20

Multiple-step income statements show

Accepted Answer

A) gross profit but not net income. 
B) neither gross profit nor net income. 
C) gross profit but not cost of merchandise sold. 
D) gross profit,cost of merchandise sold,income from operations and net income. 
A) gross profit but not net income. 
B) neither gross profit nor net income. 
C) gross profit but not cost of merchandise sold. 
D) gross profit,cost of merchandise sold,income from operations and net income.

A payment of dividends decreases which section on the statement of cash flows?

Which of the following is NOT a subsection in a multiple-step income statement?

Interest expense is an example of an expense classified under "other expense."

When purchases of merchandise are made for cash,the transaction

In a multiple-step income statement,sales will be reduced by sales discounts and sales returns and allowances to arrive at net sales.

Based on the following data,determine the cost of merchandise sold for October.

Which of the following businesses is a merchandising business?

Which of the following are subtracted from sales to arrive at net sales?

Gross profit is determined by subtracting the cost of merchandise sold from what?

The following data for the year ended June 30,2010,were extracted from the accounting records of Roof Co.: Prepare a multiple-step income statement for the current year ended June 30,2010.

Purchases discounts are discounts given to the seller.

Based on the following information,what would be recorded as purchases discount if the invoice is paid within the discount period?

Which of the following statements is true?

Sometimes a(n)__________ is offered to buyers as a means of encouraging them to pay before the end of the credit period.

Operating expenses are subtracted from fees earned for a service business and from gross profit for a merchandising business.

NBC Company had $32,000 in net sales,$15,000 in cost of merchandise sold,$18,000 in operating expenses,and $2,000 in other income.What is NBC Company's gross profit?

Which of the following accounts is a contra account to Sales?

Multiple-step income statements show

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 4: Accounting for Merchandising Businesses

A payment of dividends decreases which section on the statement of cash flows?

Which of the following is NOT a subsection in a multiple-step income statement?

Interest expense is an example of an expense classified under "other expense."

When purchases of merchandise are made for cash,the transaction

In a multiple-step income statement,sales will be reduced by sales discounts and sales returns and allowances to arrive at net sales.

Based on the following data,determine the cost of merchandise sold for October.

Which of the following businesses is a merchandising business?

Which of the following are subtracted from sales to arrive at net sales?

Gross profit is determined by subtracting the cost of merchandise sold from what?

The following data for the year ended June 30,2010,were extracted from the accounting records of Roof Co.: Prepare a multiple-step income statement for the current year ended June 30,2010.

Purchases discounts are discounts given to the seller.

Based on the following information,what would be recorded as purchases discount if the invoice is paid within the discount period?

Which of the following statements is true?

Sometimes a(n)__________ is offered to buyers as a means of encouraging them to pay before the end of the credit period.

Operating expenses are subtracted from fees earned for a service business and from gross profit for a merchandising business.

NBC Company had $32,000 in net sales,$15,000 in cost of merchandise sold,$18,000 in operating expenses,and $2,000 in other income.What is NBC Company's gross profit?

Which of the following accounts is a contra account to Sales?

Multiple-step income statements show

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters