Merchandising Operations, Accounting

Question: Gross profit will result if:
A
operating expense are less than net income.

B
sales revenues are greater than operating expense.

C
sales revenues are greater than cost of goods sold.

D
operating expense are greater than cost of goods sold.

Note: Not available
1. Report
Question: Under a perpetual inventory system, when goods are purchased for resale by a company:
A
purchases on account are debited to Merchandise Inventory.

B
purchases on account are debited to Purchases.

C
purchase returns are debited to Purchase Returns and Allowances.

D
freight costs are debited to Freight-out.

Note: Not available
1. Report
Question: The sales accounts that normally have a debit balance are:
A
Sales Discounts.

B
Sales Returns and Allowances.

C
both

D
neither

Note: Not available
1. Report
Question: A credit sale of $750 is made one June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as payment in full on June 23 is:
A
$700

B
$686

C
$685

D
$650

Note: Not available
1. Report
Question: Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system?
A
Purchases.

B
Freight-in.

C
Cost of Goods Sold.

D
Purchase Discounts.

Note: Not available
1. Report
Question: The multiple-step income statement for a merchandiser shows each of the following features except:
A
gross profit.

B
cost of goods sold.

C
a sales revenue section.

D
investing activities section.

Note: Not available
1. Report
Question: If sales revenues are $400,000, cost of goods sold is $310,000, and operating expenses are \$60,000, the gross profit is:
A
$30,000.

B
$90,000.

C
[b]$340,000.

D
$400,000.

Note: Not available
1. Report
Question: In a single-step income statement:
A
gross profit is reported.

B
cost of goods sold is not reported.

C
sales revenues and "other revenues and gains" are reported in the revenues section of the income statement.

D
operating income is separately reported.

Note: Not available
1. Report
Question: Which of the following appears on both a single-step and a multiple-step income statement?
A
sales.

B
gross profit.

C
income from operations.

D
cost of goods sold.

Note: Not available
1. Report
Question: In a work sheet, Merchandise Inventory is shown in the following columns:
A
Adjusted trial balance debit and balance sheet debit.

B
Income statement debit and balance sheet debit.

C
Income statement credit and balance sheet debit.

D
Income statement credit and adjusted trial balance debit.

Note: Not available
1. Report

First Prev 1 Next Last

Question: Gross profit will result if:

Question: Under a perpetual inventory system, when goods are purchased for resale by a company:

Question: The sales accounts that normally have a debit balance are:

Question: A credit sale of $750 is made one June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as payment in full on June 23 is:

Question: Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system?

Question: The multiple-step income statement for a merchandiser shows each of the following features except:

Question: If sales revenues are $400,000, cost of goods sold is $310,000, and operating expenses are \$60,000, the gross profit is:

Question: In a single-step income statement:

Question: Which of the following appears on both a single-step and a multiple-step income statement?

Question: In a work sheet, Merchandise Inventory is shown in the following columns: