Question 1

Please refer to the following trial balance. How much is Net sales revenue?

Accepted Answer

A) $160 000 
B) $75 000 
C) $155 000 
D) $27 000 
A) $160 000 
B) $75 000 
C) $155 000 
D) $27 000

Question 2

The accounting cycle for a retailing business begins with the purchase of inventory.

Accepted Answer

A) True 
 B)False

Question 3

In a perpetual inventory system, the entry to record the inventory purchased includes a credit to Cost of sales.

Accepted Answer

A) True 
 B)False

Question 4

A firm that uses the perpetual inventory method purchases inventory of $1 000 on credit with terms of 2/10, n/30. Defective inventory of $200 is returned 2 days later and the accounts are appropriately adjusted. If the firm paid the vendor within 10 days, which of the following entries would be made to record the payment? All amounts include GST.

Accepted Answer

A) $800 debit to Accounts payable and an $800 credit to Cash 
B) $14.55 debit to Inventory, a $1.45 debit to GST Clearing, an $800 debit to Accounts payable and an $816 credit to Cash 
C) $800 debit to Accounts payable, a $14.55 credit to Inventory, a $1.45 debit to GST Clearing and a $784 credit to Cash 
D) $784 debit to Accounts payable, a $14.55 debit to Inventory, a $1.45 debit to GST Clearing and an $800 credit to Cash 
A) $800 debit to Accounts payable and an $800 credit to Cash 
B) $14.55 debit to Inventory, a $1.45 debit to GST Clearing, an $800 debit to Accounts payable and an $816 credit to Cash 
C) $800 debit to Accounts payable, a $14.55 credit to Inventory, a $1.45 debit to GST Clearing and a $784 credit to Cash 
D) $784 debit to Accounts payable, a $14.55 debit to Inventory, a $1.45 debit to GST Clearing and an $800 credit to Cash

Question 5

The GST payable to the ATO represents the GST the firm has paid to its suppliers.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following defines Gross profit?

Accepted Answer

A) Net sales revenue less Sales discounts 
B) Net sales revenue less Cost of sales 
C) Sales revenue less Overhead expenses 
D) Sales revenue less Sales discounts and allowances 
A) Net sales revenue less Sales discounts 
B) Net sales revenue less Cost of sales 
C) Sales revenue less Overhead expenses 
D) Sales revenue less Sales discounts and allowances

Question 7

A purchase return of goods purchased on credit is recorded by the purchasing firm as a debit to what account?

Accepted Answer

A) Inventory 
B) Cost of sales 
C) Accounts payable 
D) Accounts receivable 
A) Inventory 
B) Cost of sales 
C) Accounts payable 
D) Accounts receivable

Question 8

Sales revenues were $20 000, Sales Returns and allowances were $300, Sales discounts were $700, Cost of sales were $12 000, and all other expenses totaled $4 500. The second closing entry would include which of the following line items?

Accepted Answer

A) Credit to Income summary of $16 500 
B) Debit to Income summary of $4 500 
C) Debit to Income summary of $16 500 
D) Debit to Income summary of $17 500 
A) Credit to Income summary of $16 500 
B) Debit to Income summary of $4 500 
C) Debit to Income summary of $16 500 
D) Debit to Income summary of $17 500

Question 9

Which of the following defines Net sales revenue?

Accepted Answer

A) Sales revenue less Overhead expenses 
B) Sales revenue less Sales discounts 
C) Sales revenue less Cost of sales 
D) Sales revenue less Sales returns and allowances, and Sales discounts 
A) Sales revenue less Overhead expenses 
B) Sales revenue less Sales discounts 
C) Sales revenue less Cost of sales 
D) Sales revenue less Sales returns and allowances, and Sales discounts

Question 10

The periodic inventory system is normally used for relatively inexpensive goods.

Accepted Answer

A) True 
 B)False

Please refer to the following trial balance. How much is Net sales revenue?

The accounting cycle for a retailing business begins with the purchase of inventory.

In a perpetual inventory system, the entry to record the inventory purchased includes a credit to Cost of sales.

The GST payable to the ATO represents the GST the firm has paid to its suppliers.

Which of the following defines Gross profit?

A purchase return of goods purchased on credit is recorded by the purchasing firm as a debit to what account?

Sales revenues were $20 000, Sales Returns and allowances were $300, Sales discounts were $700, Cost of sales were $12 000, and all other expenses totaled $4 500. The second closing entry would include which of the following line items?

Which of the following defines Net sales revenue?

The periodic inventory system is normally used for relatively inexpensive goods.

The Role of Accounting in Business

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities, Debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Share Capital and the Balance Sheet

Companies: Effects on Retained Earnings, Share Splits and Buy-Backs, and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Introduction to Managerial Accounting and the Master Budget

Job Costing

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

Appendix

Filters

Exam 5: Retailing Operations

Please refer to the following trial balance. How much is Net sales revenue?

The accounting cycle for a retailing business begins with the purchase of inventory.

In a perpetual inventory system, the entry to record the inventory purchased includes a credit to Cost of sales.

The GST payable to the ATO represents the GST the firm has paid to its suppliers.

Which of the following defines Gross profit?

A purchase return of goods purchased on credit is recorded by the purchasing firm as a debit to what account?

Sales revenues were $20 000, Sales Returns and allowances were $300, Sales discounts were $700, Cost of sales were $12 000, and all other expenses totaled $4 500. The second closing entry would include which of the following line items?

Which of the following defines Net sales revenue?

The periodic inventory system is normally used for relatively inexpensive goods.

The Role of Accounting in Business

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities, Debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Share Capital and the Balance Sheet

Companies: Effects on Retained Earnings, Share Splits and Buy-Backs, and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Introduction to Managerial Accounting and the Master Budget

Job Costing

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

Appendix

Filters