Question 1

In a perpetual inventory system, the Merchandise Inventory account is only used to reflect the beginning inventory.

Accepted Answer

A) True 
 B)False

Question 2

Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.

Accepted Answer

A) True 
 B)False

Question 3

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 4

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Accepted Answer

A)  consigned 
B)  n/30 
C)  FOB shipping point 
D)  FOB destination 
A)  consigned 
B)  n/30 
C)  FOB shipping point 
D)  FOB destination

Question 5

In credit terms of 3/15, n/45, the "3" represents the

Accepted Answer

A)  number of days in the discount period 
B)  full amount of the invoice 
C)  number of days when the entire amount is due 
D)  percent of the cash discount 
A)  number of days in the discount period 
B)  full amount of the invoice 
C)  number of days when the entire amount is due 
D)  percent of the cash discount

Question 6

When comparing a retail business to a service business, the financial statement that changes the most is the

Accepted Answer

A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  Statement of Cash Flow 
A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  Statement of Cash Flow

Question 7

For each of the following, calculate the cost of inventory reported on the balance sheet.

Accepted Answer

The answer of For each of the following, calculate the...

Question 8

When the perpetual inventory system is used, the inventory sold is debited to

Accepted Answer

A)  supplies expense 
B)  cost of merchandise sold 
C)  merchandise inventory 
D)  sales 
A)  supplies expense 
B)  cost of merchandise sold 
C)  merchandise inventory 
D)  sales

Question 9

A business using the perpetual inventory system, with its detailed subsidiary records, does need to take a physical inventory.

Accepted Answer

A) True 
 B)False

Question 10

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...

Question 11

Which of the following costs would be included in merchandise inventory?

Accepted Answer

The answer of Which of the following costs would be...

Question 12

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 13

Which account will be included in both service and merchandising companies closing entries?

Accepted Answer

A)  Sales 
B)  Cost of Merchandise Sold 
C)  Purchase Discounts 
D)  Sales Returns and Allowances 
A)  Sales 
B)  Cost of Merchandise Sold 
C)  Purchase Discounts 
D)  Sales Returns and Allowances

Question 14

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 15

When merchandise is returned under the perpetual inventory system, the buyer would credit

Accepted Answer

A)  Merchandise Inventory 
B)  Purchases Returns and Allowances 
C)  Accounts Payable 
D)  Accounts Receivable 
A)  Merchandise Inventory 
B)  Purchases Returns and Allowances 
C)  Accounts Payable 
D)  Accounts Receivable

Question 16

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 17

Based upon the following data, determine the cost of merchandise sold for August.

Accepted Answer

Cost of me

Question 18

Which of the following accounts has a normal credit balance?

Accepted Answer

A)  Sales Returns and Allowances 
B)  Sales 
C)  Merchandise Inventory 
D)  Delivery Expense 
A)  Sales Returns and Allowances 
B)  Sales 
C)  Merchandise Inventory 
D)  Delivery Expense

Question 19

Selected data from the ledger of Morrison Co. after adjustment at September 30, 2011 the end of the fiscal year, are listed as follows:
   Prepare an income statement, using the single-step form, and a statement of owner's equity.

Accepted Answer

@#IMG-DLM&_TB2013_00

Question 20

Under the periodic inventory system, the journal entry to record the purchase of merchandise inventory will include a debit to

Accepted Answer

A)  Merchandise Inventory 
B)  Purchases 
C)  Accounts Payable 
D)  Cost of Merchandise Purchased 
A)  Merchandise Inventory 
B)  Purchases 
C)  Accounts Payable 
D)  Cost of Merchandise Purchased

Exam 6: Accounting for Merchandising Businesses

In a perpetual inventory system, the Merchandise Inventory account is only used to reflect the beginning inventory.

Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.

Generally, the revenue account for a merchandising business is entitled

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

In credit terms of 3/15, n/45, the "3" represents the

When comparing a retail business to a service business, the financial statement that changes the most is the

For each of the following, calculate the cost of inventory reported on the balance sheet.

When the perpetual inventory system is used, the inventory sold is debited to

A business using the perpetual inventory system, with its detailed subsidiary records, does need to take a physical inventory.

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

Which of the following costs would be included in merchandise inventory?

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

Which account will be included in both service and merchandising companies closing entries?

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

When merchandise is returned under the perpetual inventory system, the buyer would credit

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

Based upon the following data, determine the cost of merchandise sold for August.

Which of the following accounts has a normal credit balance?

Selected data from the ledger of Morrison Co. after adjustment at September 30, 2011 the end of the fiscal year, are listed as follows: Prepare an income statement, using the single-step form, and a statement of owner's equity.

Under the periodic inventory system, the journal entry to record the purchase of merchandise inventory will include a debit to

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters