Question 1

The last step in the operating cycle is the

Accepted Answer

A) sale of merchandise inventory for cash or on credit. 
B) payment for purchases made on credit. 
C) collection of cash from credit sales. 
D) purchase of merchandise inventory for cash or on credit. 
A) sale of merchandise inventory for cash or on credit. 
B) payment for purchases made on credit. 
C) collection of cash from credit sales. 
D) purchase of merchandise inventory for cash or on credit.

Question 2

Under the periodic inventory system,Cost of goods sold must be computed because it is not updated for sales and other transactions during the accounting period.

Accepted Answer

A) True 
 B)False

Question 3

What is the financing period? Is a longer or shorter financing period most desireable?

Accepted Answer

The financing period is the amount of ti

Question 4

Whalen Mining,a U.S company,purchases products from a British company for £1,000,000.Between the dates of purchase and payment,the exchange value of the pound decreased from $2.00 to $1.90.Compute Whalen Mining's exchange gain or loss.Where would the gain or loss be reported?

Accepted Answer

Whalen Mining has an exchange gain of $1

Question 5

Freight-in is treated as an addition in the cost of goods sold section of the income statement.

Accepted Answer

A) True 
 B)False

Question 6

Exchange gains and losses are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 7

The change in merchandise inventory level from the beginning to the end of the year affects cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 8

When the periodic inventory system is used,a physical inventory should be taken at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 9

If insured goods are shipped FOB destination,the seller should file a claim for goods damaged in transit.

Accepted Answer

A) True 
 B)False

Question 10

Under the periodic inventory system,the amount for inventory on hand is accurate only on the balance sheet date.

Accepted Answer

A) True 
 B)False

Question 11

Copper,Inc.purchased merchandise worth $1,800 on credit,terms n/30 and returned merchandise worth $200 on next day.What is the required journal entry to record the merchandise returns under the periodic inventory system?

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

Question 12

Under the perpetual inventory system,the return of goods from a customer would increase Cost of Goods sold and decrease Merchandise Inventory.

Accepted Answer

A) True 
 B)False

Question 13

An advantage of using the perpetual inventory system is that it requires less recordkeeping than the periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 14

Assuming the use of the periodic inventory system,use the data below to calculate the net cost of purchases and the cost of goods available for sale for the year ended December 31,20x5.

Accepted Answer

@#IMG-DLM& Cost of Goods Available for Sale must b

Question 15

A retail operation would not have to take a physical inventory if it uses a perpetual inventory system.

Accepted Answer

A) True 
 B)False

Question 16

Under the perpetual inventory system,the purchase of merchandise is recorded with a debit to Purchases.

Accepted Answer

A) True 
 B)False

Question 17

Gross margin is the difference between net sales and

Accepted Answer

A) net income. 
B) cost of goods sold plus operating expenses. 
C) operating expenses. 
D) cost of goods sold. 
A) net income. 
B) cost of goods sold plus operating expenses. 
C) operating expenses. 
D) cost of goods sold.

Exam 6: Accounting for Merchandising Operations

The last step in the operating cycle is the

Under the periodic inventory system,Cost of goods sold must be computed because it is not updated for sales and other transactions during the accounting period.

What is the financing period? Is a longer or shorter financing period most desireable?

Whalen Mining,a U.S company,purchases products from a British company for £1,000,000.Between the dates of purchase and payment,the exchange value of the pound decreased from $2.00 to $1.90.Compute Whalen Mining's exchange gain or loss.Where would the gain or loss be reported?

Freight-in is treated as an addition in the cost of goods sold section of the income statement.

Exchange gains and losses are reported on the income statement.

The change in merchandise inventory level from the beginning to the end of the year affects cost of goods sold.

When the periodic inventory system is used,a physical inventory should be taken at the end of the fiscal year.

If insured goods are shipped FOB destination,the seller should file a claim for goods damaged in transit.

Under the periodic inventory system,the amount for inventory on hand is accurate only on the balance sheet date.

Copper,Inc.purchased merchandise worth $1,800 on credit,terms n/30 and returned merchandise worth $200 on next day.What is the required journal entry to record the merchandise returns under the periodic inventory system?

Under the perpetual inventory system,the return of goods from a customer would increase Cost of Goods sold and decrease Merchandise Inventory.

An advantage of using the perpetual inventory system is that it requires less recordkeeping than the periodic inventory system.

Assuming the use of the periodic inventory system,use the data below to calculate the net cost of purchases and the cost of goods available for sale for the year ended December 31,20x5.

A retail operation would not have to take a physical inventory if it uses a perpetual inventory system.

Under the perpetual inventory system,the purchase of merchandise is recorded with a debit to Purchases.

Gross margin is the difference between net sales and

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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