Question 1

Under the perpetual inventory system,when a sale is made,both the sale and cost of merchandise sold are recorded.

Accepted Answer

A) True 
 B)False  True

Question 2

Under a periodic inventory system,the merchandise on hand at the end of the year is determined by a physical count of the inventory.

Accepted Answer

A) True 
 B)False  True

Question 3

If the buyer bears the freight costs related to a purchase,the terms are said to be FOB destination.

Accepted Answer

A) True 
 B)False  False

Question 4

Calculate income from operations for Jonas Company based on the data given below:

Accepted Answer

A) 753,250 
B) 700,750 
C) 162,750 
D) 215,250 
A) 753,250 
B) 700,750 
C) 162,750 
D) 215,250

Question 5

If the perpetual inventory system is used,an account entitled Cost of Merchandise Sold is included in the general ledger.

Accepted Answer

A) True 
 B)False

Question 6

Which account is not classified as a selling expense?

Accepted Answer

A) Sales Salaries 
B) Freight-Out 
C) Freight-In 
D) Advertising Expense 
A) Sales Salaries 
B) Freight-Out 
C) Freight-In 
D) Advertising Expense

Question 7

A retailer purchases merchandise with a catalog list price of $30,000.The retailer receives a 15% trade discount and credit terms of 2/10,n/30.How much cash will be needed to pay this invoice within the discount period?

Accepted Answer

A) $30,000 
B) $24,900 
C) $29,400 
D) $24,990 
A) $30,000 
B) $24,900 
C) $29,400 
D) $24,990

Question 8

Gross profit minus selling expenses equals net income.

Accepted Answer

A) True 
 B)False

Question 9

A seller may grant a buyer a reduction in selling price and this is called a sales allowance.

Accepted Answer

A) True 
 B)False

Question 10

Under a perpetual inventory system

Accepted Answer

A) accounting records continuously disclose the amount of inventory 
B) increases in inventory resulting from purchases are debited to Purchases 
C) there is no need for a year-end physical count 
D) the purchase returns and allowances account is credited when goods are returned to vendors 
A) accounting records continuously disclose the amount of inventory 
B) increases in inventory resulting from purchases are debited to Purchases 
C) there is no need for a year-end physical count 
D) the purchase returns and allowances account is credited when goods are returned to vendors

Question 11

On March 25,2014,Patton Company sold merchandise on account,$10,000.The applicable sales tax percentage is 8.5%.Record the transaction.

Accepted Answer

The answer of On March 25,2014,Patton Company sold merchandise on...

Question 12

Generally,the revenue account for a merchandising business is entitled

Accepted Answer

A) Sales 
B) Fees Earned 
C) Gross Sales 
D) Gross Profit 
A) Sales 
B) Fees Earned 
C) Gross Sales 
D) Gross Profit

Question 13

Cost of Merchandise Sold is often the largest expense on a merchandising company income statement.

Accepted Answer

A) True 
 B)False

Question 14

If payment is due by the end of the month in which the sale is made,the invoice terms are expressed as n/30.

Accepted Answer

A) True 
 B)False

Question 15

What is the major difference between a periodic and perpetual inventory system?

Accepted Answer

A) Under the periodic inventory system,the purchase of inventory will be debited to the Purchases account 
B) Under the periodic inventory system,no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. 
C) Under the periodic inventory system,all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month. 
D) All are correct. 
A) Under the periodic inventory system,the purchase of inventory will be debited to the Purchases account 
B) Under the periodic inventory system,no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. 
C) Under the periodic inventory system,all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month. 
D) All are correct.

Question 16

Selected accounts and amounts appear below.Journalize the closing entry,assuming a perpetual inventory system.

Accepted Answer

The answer of Selected accounts and amounts appear below.Journalize the...

Question 17

Based on the information below,journalize the entries for the Seller and the Buyer.Both use a perpetual inventory system.

Accepted Answer

The answer of Based on the information below,journalize the entries...

Question 18

Bargain Wholesalers sells pet supplies to retailers including Pet World Supplies.Bargain Wholesalers uses perpetual inventory.Use a General Journal to journalize the following three transactions during the month of May:

Accepted Answer

@#IMG-DLM& Computati

Question 19

Using a perpetual inventory system,the entry to record the return of merchandise purchased on account includes a

Accepted Answer

A) debit to Cost of Merchandise Sold 
B) credit to Accounts Payable 
C) credit to Merchandise Inventory 
D) credit to Sales 
A) debit to Cost of Merchandise Sold 
B) credit to Accounts Payable 
C) credit to Merchandise Inventory 
D) credit to Sales

Question 20

Journalize the following transactions for both Abbott Co.(seller)and Dalton Co.(buyer).Assume both the companies use the perpetual inventory system.

Accepted Answer

The answer of Journalize the following transactions for both Abbott...

Under the perpetual inventory system,when a sale is made,both the sale and cost of merchandise sold are recorded.

Under a periodic inventory system,the merchandise on hand at the end of the year is determined by a physical count of the inventory.

If the buyer bears the freight costs related to a purchase,the terms are said to be FOB destination.

Calculate income from operations for Jonas Company based on the data given below:

If the perpetual inventory system is used,an account entitled Cost of Merchandise Sold is included in the general ledger.

Which account is not classified as a selling expense?

A retailer purchases merchandise with a catalog list price of $30,000.The retailer receives a 15% trade discount and credit terms of 2/10,n/30.How much cash will be needed to pay this invoice within the discount period?

Gross profit minus selling expenses equals net income.

A seller may grant a buyer a reduction in selling price and this is called a sales allowance.

Under a perpetual inventory system

On March 25,2014,Patton Company sold merchandise on account,$10,000.The applicable sales tax percentage is 8.5%.Record the transaction.

Generally,the revenue account for a merchandising business is entitled

Cost of Merchandise Sold is often the largest expense on a merchandising company income statement.

If payment is due by the end of the month in which the sale is made,the invoice terms are expressed as n/30.

What is the major difference between a periodic and perpetual inventory system?

Selected accounts and amounts appear below.Journalize the closing entry,assuming a perpetual inventory system.

Based on the information below,journalize the entries for the Seller and the Buyer.Both use a perpetual inventory system.

Bargain Wholesalers sells pet supplies to retailers including Pet World Supplies.Bargain Wholesalers uses perpetual inventory.Use a General Journal to journalize the following three transactions during the month of May:

Using a perpetual inventory system,the entry to record the return of merchandise purchased on account includes a

Journalize the following transactions for both Abbott Co.(seller)and Dalton Co.(buyer).Assume both the companies use the perpetual inventory system.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 5: Accounting for Merchandising Businesses

Under the perpetual inventory system,when a sale is made,both the sale and cost of merchandise sold are recorded.

Under a periodic inventory system,the merchandise on hand at the end of the year is determined by a physical count of the inventory.

If the buyer bears the freight costs related to a purchase,the terms are said to be FOB destination.

Calculate income from operations for Jonas Company based on the data given below:

If the perpetual inventory system is used,an account entitled Cost of Merchandise Sold is included in the general ledger.

Which account is not classified as a selling expense?

A retailer purchases merchandise with a catalog list price of $30,000.The retailer receives a 15% trade discount and credit terms of 2/10,n/30.How much cash will be needed to pay this invoice within the discount period?

Gross profit minus selling expenses equals net income.

A seller may grant a buyer a reduction in selling price and this is called a sales allowance.

Under a perpetual inventory system

On March 25,2014,Patton Company sold merchandise on account,$10,000.The applicable sales tax percentage is 8.5%.Record the transaction.

Generally,the revenue account for a merchandising business is entitled

Cost of Merchandise Sold is often the largest expense on a merchandising company income statement.

If payment is due by the end of the month in which the sale is made,the invoice terms are expressed as n/30.

What is the major difference between a periodic and perpetual inventory system?

Selected accounts and amounts appear below.Journalize the closing entry,assuming a perpetual inventory system.

Based on the information below,journalize the entries for the Seller and the Buyer.Both use a perpetual inventory system.

Bargain Wholesalers sells pet supplies to retailers including Pet World Supplies.Bargain Wholesalers uses perpetual inventory.Use a General Journal to journalize the following three transactions during the month of May:

Using a perpetual inventory system,the entry to record the return of merchandise purchased on account includes a

Journalize the following transactions for both Abbott Co.(seller)and Dalton Co.(buyer).Assume both the companies use the perpetual inventory system.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters