Exam 6: Internal Control and Financial Reporting for Cash and Merchandising Operations

Consider the following single-step income statement. Required: Prepare a multistep income statement for Creative Tax Service for the year ended December 31,2016.

(Essay)

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Question 161

When a company collects from a customer who pays within the discount period,the company:

(Multiple Choice)

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Question 162

XYZ Company sold merchandise for $5,000,with payment terms of 2/10,n/30.If the customer pays within the discount period and takes the discount,XYZ will receive:

(Multiple Choice)

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Question 163

Assuming the perpetual inventory system is used,which of the following statements about the multistep income statement is correct?

(Multiple Choice)

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Question 164

A company has net sales of $612,850 and cost of goods sold of $441,252.The company's gross profit percentage is:

(Multiple Choice)

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Question 165

The gross profit percentage is an indication of how:

(Multiple Choice)

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Question 166

What does the gross profit percentage tell you?

(Multiple Choice)

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Question 167

Beyer Company bought inventory FOB shipping point from Sellar Company for $4,000 cash,including shipping charges.On December 31,the last day of the accounting year,the goods were on a truck owned by Common Carrier,Inc.,and not expected to arrive until January 3.Which company should include these goods in its December 31 inventory?

(Multiple Choice)

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Question 168

The journal entry to record taking a discount when paying for goods previously purchased on account:

(Multiple Choice)

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Question 169

In a retail business that uses a perpetual inventory system,scanning a bar code does not:

(Multiple Choice)

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Question 170

A retail chain sells 100 designer sheet sets for $199.99 a set; the company purchased these sheet sets at $69.95 per set.The company also sells 1,000 basic sheet sets for $49.99 a set.The company purchased these sheet sets at $24.99 per set.Operating expenses equal $10,000. Required: Part a.Calculate the gross profit percentages of each product (rounded to the nearest whole number). Part b.Calculate the total gross profit. Part c.Calculate income before income tax expense

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Question 171

Which of the following statements is not correct about sales returns and allowances?

(Multiple Choice)

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Question 172

Over a two-year period,Beneful Product's gross profit percentage went from 70.4% to 69.7%.Which of the following could not have been the cause of this change?

(Multiple Choice)

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Question 173

A merchandising company's operating cycle begins with the sale of inventory and ends with the cash collection from sales.

(True/False)

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Question 174

A company reported a decrease in sales revenue from $860,000 last year to $760,000 this year and a decrease in gross profit from $400,000 last year to $360,000 this year. Required: Part a.Calculate the gross profit percentages for both years. Part b.Was the change in gross profit caused by the change in sales volume,the change in the gross profit per sale,or a combination of the two? Explain.

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Question 175

The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. Required: Part a.Prepare a multistep income statement. Part b.Compute the gross profit percentage.

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Question 176

Your store buys ice cream at a cost of $1.50 a half gallon and sells it for $4 a half gallon.Selling,general,and administrative expenses are $0.75 per half gallon.Which of the following statements is correct?

(Multiple Choice)

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Question 177

A retail store that drops all of its product prices by 25% will experience a(n) in its overall gross profit percentage but may experience a(n) in sales volume.

(Multiple Choice)

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Question 178

Which of the following statements about a multistep income statement is not correct?

(Multiple Choice)

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Question 179

In order to calculate shrinkage:

(Multiple Choice)

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Question 180

Showing 161 - 180 of 210

Consider the following single-step income statement. Required: Prepare a multistep income statement for Creative Tax Service for the year ended December 31,2016.

When a company collects from a customer who pays within the discount period,the company:

XYZ Company sold merchandise for $5,000,with payment terms of 2/10,n/30.If the customer pays within the discount period and takes the discount,XYZ will receive:

Assuming the perpetual inventory system is used,which of the following statements about the multistep income statement is correct?

A company has net sales of $612,850 and cost of goods sold of $441,252.The company's gross profit percentage is:

The gross profit percentage is an indication of how:

What does the gross profit percentage tell you?

The journal entry to record taking a discount when paying for goods previously purchased on account:

In a retail business that uses a perpetual inventory system,scanning a bar code does not:

Which of the following statements is not correct about sales returns and allowances?

Over a two-year period,Beneful Product's gross profit percentage went from 70.4% to 69.7%.Which of the following could not have been the cause of this change?

A merchandising company's operating cycle begins with the sale of inventory and ends with the cash collection from sales.

The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. Required: Part a.Prepare a multistep income statement. Part b.Compute the gross profit percentage.

Your store buys ice cream at a cost of $1.50 a half gallon and sells it for $4 a half gallon.Selling,general,and administrative expenses are $0.75 per half gallon.Which of the following statements is correct?

A retail store that drops all of its product prices by 25% will experience a(n) in its overall gross profit percentage but may experience a(n) in sales volume.

Which of the following statements about a multistep income statement is not correct?

In order to calculate shrinkage:

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 6: Internal Control and Financial Reporting for Cash and Merchandising Operations

Consider the following single-step income statement. Required: Prepare a multistep income statement for Creative Tax Service for the year ended December 31,2016.

When a company collects from a customer who pays within the discount period,the company:

XYZ Company sold merchandise for $5,000,with payment terms of 2/10,n/30.If the customer pays within the discount period and takes the discount,XYZ will receive:

Assuming the perpetual inventory system is used,which of the following statements about the multistep income statement is correct?

A company has net sales of $612,850 and cost of goods sold of $441,252.The company's gross profit percentage is:

The gross profit percentage is an indication of how:

What does the gross profit percentage tell you?

The journal entry to record taking a discount when paying for goods previously purchased on account:

In a retail business that uses a perpetual inventory system,scanning a bar code does not:

Which of the following statements is not correct about sales returns and allowances?

Over a two-year period,Beneful Product's gross profit percentage went from 70.4% to 69.7%.Which of the following could not have been the cause of this change?

A merchandising company's operating cycle begins with the sale of inventory and ends with the cash collection from sales.

The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. Required: Part a.Prepare a multistep income statement. Part b.Compute the gross profit percentage.

Your store buys ice cream at a cost of $1.50 a half gallon and sells it for $4 a half gallon.Selling,general,and administrative expenses are $0.75 per half gallon.Which of the following statements is correct?

A retail store that drops all of its product prices by 25% will experience a(n)________ in its overall gross profit percentage but may experience a(n)________ in sales volume.

Which of the following statements about a multistep income statement is not correct?

In order to calculate shrinkage:

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

A retail store that drops all of its product prices by 25% will experience a(n) in its overall gross profit percentage but may experience a(n) in sales volume.