A) Earn net income from buying and selling merchandise. B) Receive fees in exchange for services. C) Earn net income from commissions. D) Earn net income from fares. E) Do not report gross profit. A) Earn net income from buying and selling merchandise. B) Receive fees in exchange for services. C) Earn net income from commissions. D) Earn net income from fares. E) Do not report gross profit.

A) The same as net income. B) Subtracted from operating income to get net income. C) Net sales less cost of goods sold. D) A special general ledger account. E) Only calculated when using the perpetual inventory system. A) The same as net income. B) Subtracted from operating income to get net income. C) Net sales less cost of goods sold. D) A special general ledger account. E) Only calculated when using the perpetual inventory system.

Exam 5: Accounting for Merchandising Activities

A journal entry with a debit to cash of $980,a debit to Sales Discounts of $20,and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.

(True/False)

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Question 101

Merchandisers:

(Multiple Choice)

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Question 102

For a merchandising company using the perpetual inventory system,the second closing entry closes debit balances in:

(Multiple Choice)

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Question 103

A periodic inventory system:

(Multiple Choice)

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Question 104

Z-Mart had a gross profit of $340,000 based on sales of $700,000.Its cost of goods sold was $350,000.

(True/False)

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Question 105

When a single goods and services tax (GST)or Harmonized Sales Tax (HST)account is used,a debit balance in the account means the government owes money to the business.

(True/False)

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Question 106

Merchandising companies must account for:

(Multiple Choice)

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Question 107

The following is the trial balance for Roller Skate Store at their year end,December 31,2015: Prepare the necessary closing entries at December 31,2015.

(Essay)

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Question 108

A periodic inventory system requires updating the inventory account at the beginning of an accounting period.

(True/False)

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Question 109

In a periodic inventory system,Purchases is a temporary account.

(True/False)

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Question 110

FOB shipping or FOB factory means ownership of goods transfers to the buyer at the buyer's place of business.

(True/False)

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Question 111

A periodic inventory system:

(Multiple Choice)

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Question 112

Gross profit is:

(Multiple Choice)

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Question 113

The cash sales operating cycle moves from:

(Multiple Choice)

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Question 114

Merchandise inventory:

(Multiple Choice)

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Question 115

Businesses normally get a full credit for the provincial sales tax (PST)they have paid.

(True/False)

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Question 116

A perpetual inventory system gives a continuous record of the amount of inventory on hand.

(True/False)

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Question 117

On December 5,Z-Mart purchased $1,800 worth of merchandise.On December 7,Z-Mart returned $400 worth of merchandise.On December 8,the company paid the balance in full,taking a 2% discount.The amount of the payment was:

(Multiple Choice)

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Question 118

Sales returns and allowances:

(Multiple Choice)

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Question 119

Shrinkage can be calculated by comparing _______________ of the inventory with recorded quantities.

(Short Answer)

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Question 120

Showing 101 - 120 of 127

A journal entry with a debit to cash of $980,a debit to Sales Discounts of $20,and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.

Merchandisers:

For a merchandising company using the perpetual inventory system,the second closing entry closes debit balances in:

A periodic inventory system:

Z-Mart had a gross profit of $340,000 based on sales of $700,000.Its cost of goods sold was $350,000.

When a single goods and services tax (GST)or Harmonized Sales Tax (HST)account is used,a debit balance in the account means the government owes money to the business.

Merchandising companies must account for:

The following is the trial balance for Roller Skate Store at their year end,December 31,2015: Prepare the necessary closing entries at December 31,2015.

A periodic inventory system requires updating the inventory account at the beginning of an accounting period.

In a periodic inventory system,Purchases is a temporary account.

FOB shipping or FOB factory means ownership of goods transfers to the buyer at the buyer's place of business.

A periodic inventory system:

Gross profit is:

The cash sales operating cycle moves from:

Merchandise inventory:

Businesses normally get a full credit for the provincial sales tax (PST)they have paid.

A perpetual inventory system gives a continuous record of the amount of inventory on hand.

On December 5,Z-Mart purchased $1,800 worth of merchandise.On December 7,Z-Mart returned $400 worth of merchandise.On December 8,the company paid the balance in full,taking a 2% discount.The amount of the payment was:

Sales returns and allowances:

Shrinkage can be calculated by comparing _______________ of the inventory with recorded quantities.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters