Question 1

The statement of owner's equity shows

Accepted Answer

A) only net income,beginning and ending capital 
B) only total assets,beginning and ending capital 
C) only net income,beginning capital,and withdrawals 
D) all the changes in the owner's capital as a result of net income,net loss,additional investments,and withdrawals 
A) only net income,beginning and ending capital 
B) only total assets,beginning and ending capital 
C) only net income,beginning capital,and withdrawals 
D) all the changes in the owner's capital as a result of net income,net loss,additional investments,and withdrawals

Question 2

Most companies will take a purchases discount,because 1% or 2% discounts are insignificant.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following accounts has a normal debit balance?

Accepted Answer

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

Question 4

If merchandise sold on account is returned to the seller,the seller may inform the customer of the details 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 5

The buyer will include the sales tax as part of the cost of items purchased for use.

Accepted Answer

A) True 
 B)False

Question 6

The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do accept all credit cards.

Accepted Answer

A) True 
 B)False

Question 7

Net sales is equal to sales minus cost of merchandise sold.

Accepted Answer

A) True 
 B)False

Question 8

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 9

When the perpetual inventory system is used,the inventory sold is shown on the income statement as

Accepted Answer

A) cost of merchandise sold 
B) purchases 
C) purchases returns and allowances 
D) net purchases 
A) cost of merchandise sold 
B) purchases 
C) purchases returns and allowances 
D) net purchases

Question 10

Anthony Company sold Madison Company merchandise on account FOB shipping point,2/10,net 30,for $10,000.Anthony prepaid the $300 shipping charge.Which of the following entries does Anthony make to record this sale?

Accepted Answer

A) Accounts Receivable-Madison,debit $10,000;Sales,credit $10,000 
B) Accounts Receivable-Madison,debit $10,000;Sales,credit $10,000,and Accounts Receivable-Madison,debit $300;Cash,credit $300 
C) Accounts Receivable-Madison,debit $10,300;Sales,credit $10,300 
D) Accounts Receivable-Madison,debit $10,000;Sales,credit $10,000,and Freight Out,debit $300;Cash,credit $300 
A) Accounts Receivable-Madison,debit $10,000;Sales,credit $10,000 
B) Accounts Receivable-Madison,debit $10,000;Sales,credit $10,000,and Accounts Receivable-Madison,debit $300;Cash,credit $300 
C) Accounts Receivable-Madison,debit $10,300;Sales,credit $10,300 
D) Accounts Receivable-Madison,debit $10,000;Sales,credit $10,000,and Freight Out,debit $300;Cash,credit $300

Question 11

Calculate the gross profit 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 12

Gross profit is equal to:

Accepted Answer

A) sales plus (sales discounts and sales returns and allowances)plus cost of merchandise sold 
B) sales plus sales returns and allowances less sales discounts less cost of merchandise sold 
C) sales plus sales discounts less sales returns and allowances less cost of merchandise sold 
D) sales less (sales discounts and sales returns and allowances)less cost of merchandise sold 
A) sales plus (sales discounts and sales returns and allowances)plus cost of merchandise sold 
B) sales plus sales returns and allowances less sales discounts less cost of merchandise sold 
C) sales plus sales discounts less sales returns and allowances less cost of merchandise sold 
D) sales less (sales discounts and sales returns and allowances)less cost of merchandise sold

Question 13

The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include

Accepted Answer

A) only the list price 
B) only the sales tax 
C) the list price plus the sales tax 
D) the list price less the sales tax 
A) only the list price 
B) only the sales tax 
C) the list price plus the sales tax 
D) the list price less the sales tax

Question 14

Journalize the following transactions assuming the perpetual inventory system:
   
Journal

Accepted Answer

The answer of Journalize the following transactions assuming the perpetual...

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following is not a difference between a retail business and a service business?

Accepted Answer

A) in what is sold 
B) the inclusion of gross profit in the income statement 
C) accounting equation 
D) merchandise inventory included in the balance sheet 
A) in what is sold 
B) the inclusion of gross profit in the income statement 
C) accounting equation 
D) merchandise inventory included in the balance sheet

Question 18

Cleary Company had total Sales of $550,000;Sales Discounts of $10,000;Sales Returns of $40,000 and Cost of Merchandise Sold of $200,000 during 2010.The total asset balance at the beginning of the year was $175,000 and at the end of the year was $167,000.Calculate the ratio of net sales to total assets (Round answer to 2 decimal points).

Accepted Answer

A) 1.75 
B) 2.92 
C) .34 
D) .57 
A) 1.75 
B) 2.92 
C) .34 
D) .57

Question 19

Computerized systems can be used to capture accounting information such as accounts receivable,inventory items,accounts payable,and sales.

Accepted Answer

A) True 
 B)False

Question 20

On March 5th,Blowout Sales makes $22,500.00 in sales on the company's own credit cards.The cost of merchandise sold are $16,825.00.Journalize the sales and recognition of the cost of merchandise sold.

Accepted Answer

Mar 5 Accounts Receivable 22,5

The statement of owner's equity shows

Most companies will take a purchases discount,because 1% or 2% discounts are insignificant.

Which of the following accounts has a normal debit balance?

If merchandise sold on account is returned to the seller,the seller may inform the customer of the details by issuing a

The buyer will include the sales tax as part of the cost of items purchased for use.

The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do accept all credit cards.

Net sales is equal to sales minus cost of merchandise sold.

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

When the perpetual inventory system is used,the inventory sold is shown on the income statement as

Anthony Company sold Madison Company merchandise on account FOB shipping point,2/10,net 30,for $10,000.Anthony prepaid the $300 shipping charge.Which of the following entries does Anthony make to record this sale?

Calculate the gross profit for Jonas Company based on the data given below:

Gross profit is equal to:

The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include

Journalize the following transactions assuming the perpetual inventory system: Journal

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.

Which one of the following is not a difference between a retail business and a service business?

Computerized systems can be used to capture accounting information such as accounts receivable,inventory items,accounts payable,and sales.

On March 5th,Blowout Sales makes $22,500.00 in sales on the company's own credit cards.The cost of merchandise sold are $16,825.00.Journalize the sales and recognition of the cost of merchandise sold.

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

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Exam 5: Accounting for Merchandising Businesses

The statement of owner's equity shows

Most companies will take a purchases discount,because 1% or 2% discounts are insignificant.

Which of the following accounts has a normal debit balance?

If merchandise sold on account is returned to the seller,the seller may inform the customer of the details by issuing a

The buyer will include the sales tax as part of the cost of items purchased for use.

The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do accept all credit cards.

Net sales is equal to sales minus cost of merchandise sold.

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

When the perpetual inventory system is used,the inventory sold is shown on the income statement as

Anthony Company sold Madison Company merchandise on account FOB shipping point,2/10,net 30,for $10,000.Anthony prepaid the $300 shipping charge.Which of the following entries does Anthony make to record this sale?

Calculate the gross profit for Jonas Company based on the data given below:

Gross profit is equal to:

The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include

Journalize the following transactions assuming the perpetual inventory system: Journal

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.

Which one of the following is not a difference between a retail business and a service business?

Computerized systems can be used to capture accounting information such as accounts receivable,inventory items,accounts payable,and sales.

On March 5th,Blowout Sales makes $22,500.00 in sales on the company's own credit cards.The cost of merchandise sold are $16,825.00.Journalize the sales and recognition of the cost of merchandise sold.

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