Question 1

The collection of a $400 account within the 2 percent discount period would result in a(n)

Accepted Answer

A)  increase to Accounts Receivable for $392. 
B)  decrease to Cash for $392. 
C)  increase to Sales Discounts for $8. 
D)  decrease to Accounts Receivable for $392. 
A)  increase to Accounts Receivable for $392. 
B)  decrease to Cash for $392. 
C)  increase to Sales Discounts for $8. 
D)  decrease to Accounts Receivable for $392.

Question 2

If insured goods are shipped FOB destination,the seller should file a claim for goods damaged in transit.

Accepted Answer

A) True 
 B)False

Question 3

Bryan Company purchased merchandize worth $1,800 on credit,terms n/30 and returned merchandise worth $200 the next day.What is the required journal entry to record the merchandise returns under the perpetual inventory system?

Accepted Answer

A)  Accounts Payable 200
Purchases Returns and Allowances 200 
B)  Accounts Payable 200
Merchandise Inventory 200 
C)  Merchandise Inventory 200
Purchases Returns and Allowances 200 
D)  Purchases Returns and Allowances 200
Merchandise Inventory 200 
A)  Accounts Payable 200
Purchases Returns and Allowances 200 
B)  Accounts Payable 200
Merchandise Inventory 200 
C)  Merchandise Inventory 200
Purchases Returns and Allowances 200 
D)  Purchases Returns and Allowances 200
Merchandise Inventory 200

Question 4

From the following data,calculate the amount of gross margin and gross purchases.

Accepted Answer

Gross margin: $2560 - $1,556 =

Question 5

Given the following information,prepare in good form the cost of goods sold section of an income statement for 2013.

Accepted Answer

The answer of Given the following information,prepare in good form...

Question 6

For a company that takes an average of 40 days to sell inventory,takes an average of 90 days to collect for its sales,and has payment terms of 60 days on its purchases,what is the financing period? Show calculations.

Accepted Answer

The answer of For a company that takes an average...

Question 7

The terms "2/10,n/30" mean that a 2 percent discount is allowed on payments made before 10 days after the invoice date.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not an internal control activity for cash?

Accepted Answer

A)  Limit the number of employees who have access to cash. 
B)  Recordkeeping and physical custody of cash should be performed by the same person. 
C)  Record and deposit all cash receipts promptly. 
D)  Banking facilities should be used as much as possible. 
A)  Limit the number of employees who have access to cash. 
B)  Recordkeeping and physical custody of cash should be performed by the same person. 
C)  Record and deposit all cash receipts promptly. 
D)  Banking facilities should be used as much as possible.

Question 9

Which of the following documents would be sent to the treasurer?

Accepted Answer

A)  Invoice 
B)  Purchase order 
C)  Check authorization 
D)  Bank statement 
A)  Invoice 
B)  Purchase order 
C)  Check authorization 
D)  Bank statement

Question 10

Compute the dollar amount of the items indicated by letters a through f in the table below.

Accepted Answer

a.$75 + $4,975 - $4,900 = $150

Question 11

Computerization has led to a large increase in the use of the periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 12

The operating cycle involves the purchase and sale of merchandise inventory as well as the subsequent collection of cash from credit sales.

Accepted Answer

A) True 
 B)False

Question 13

Sandy's Supply Store,Inc.,entered into the transactions listed below.In the journal provided,prepare Sandy's entries,assuming use of the perpetual inventory system.Omit explanations.

Accepted Answer

The answer of Sandy's Supply Store,Inc.,entered into the transactions listed...

Question 14

FOB shipping point means that the seller incurs the shipping costs.

Accepted Answer

A) True 
 B)False

Question 15

The periodic inventory system provides an up-to-date amount of inventory on hand.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following documents is prepared by a company's accounting department?

Accepted Answer

A)  Receiving report 
B)  Check authorization 
C)  Purchase order 
D)  Purchase requisition 
A)  Receiving report 
B)  Check authorization 
C)  Purchase order 
D)  Purchase requisition

Question 17

A retailer accepted Visa charge sales totaling $1,500 and deposited the charge slips in the bank.Assuming a credit card discount expense of 4 percent,what would be the increase to Cash and the increase to Sales,respectively?

Accepted Answer

A)  $1,500 and $1,440 
B)  $1,440 and $1,500 
C)  $1,440 and $1,440 
D)  $1,500 and $1,500 
A)  $1,500 and $1,440 
B)  $1,440 and $1,500 
C)  $1,440 and $1,440 
D)  $1,500 and $1,500

Question 18

A company with a current ratio of 1.0 is considered more liquid than one with a current ratio of 2.0.

Accepted Answer

A) True 
 B)False

Question 19

Assuming the use of the periodic inventory system,use the data below to calculate the net cost of purchases and the goods available for sale for the year ended December 31,2013.

Accepted Answer

@#IMG-DLM& Goods Available for Sale must be found

Question 20

Under an effective system of internal control,errors occur only as a result of fraud or dishonesty.

Accepted Answer

A) True 
 B)False

The collection of a $400 account within the 2 percent discount period would result in a(n)

If insured goods are shipped FOB destination,the seller should file a claim for goods damaged in transit.

Bryan Company purchased merchandize worth $1,800 on credit,terms n/30 and returned merchandise worth $200 the next day.What is the required journal entry to record the merchandise returns under the perpetual inventory system?

From the following data,calculate the amount of gross margin and gross purchases.

Given the following information,prepare in good form the cost of goods sold section of an income statement for 2013.

For a company that takes an average of 40 days to sell inventory,takes an average of 90 days to collect for its sales,and has payment terms of 60 days on its purchases,what is the financing period? Show calculations.

The terms "2/10,n/30" mean that a 2 percent discount is allowed on payments made before 10 days after the invoice date.

Which of the following is not an internal control activity for cash?

Which of the following documents would be sent to the treasurer?

Compute the dollar amount of the items indicated by letters a through f in the table below.

Computerization has led to a large increase in the use of the periodic inventory system.

The operating cycle involves the purchase and sale of merchandise inventory as well as the subsequent collection of cash from credit sales.

Sandy's Supply Store,Inc.,entered into the transactions listed below.In the journal provided,prepare Sandy's entries,assuming use of the perpetual inventory system.Omit explanations.

FOB shipping point means that the seller incurs the shipping costs.

The periodic inventory system provides an up-to-date amount of inventory on hand.

Which of the following documents is prepared by a company's accounting department?

A retailer accepted Visa charge sales totaling $1,500 and deposited the charge slips in the bank.Assuming a credit card discount expense of 4 percent,what would be the increase to Cash and the increase to Sales,respectively?

A company with a current ratio of 1.0 is considered more liquid than one with a current ratio of 2.0.

Assuming the use of the periodic inventory system,use the data below to calculate the net cost of purchases and the goods available for sale for the year ended December 31,2013.

Under an effective system of internal control,errors occur only as a result of fraud or dishonesty.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters

Exam 6: The Operating Cycle and Merchandising Operations

The collection of a $400 account within the 2 percent discount period would result in a(n)

If insured goods are shipped FOB destination,the seller should file a claim for goods damaged in transit.

Bryan Company purchased merchandize worth $1,800 on credit,terms n/30 and returned merchandise worth $200 the next day.What is the required journal entry to record the merchandise returns under the perpetual inventory system?

From the following data,calculate the amount of gross margin and gross purchases.

Given the following information,prepare in good form the cost of goods sold section of an income statement for 2013.

For a company that takes an average of 40 days to sell inventory,takes an average of 90 days to collect for its sales,and has payment terms of 60 days on its purchases,what is the financing period? Show calculations.

The terms "2/10,n/30" mean that a 2 percent discount is allowed on payments made before 10 days after the invoice date.

Which of the following is not an internal control activity for cash?

Which of the following documents would be sent to the treasurer?

Compute the dollar amount of the items indicated by letters a through f in the table below.

Computerization has led to a large increase in the use of the periodic inventory system.

The operating cycle involves the purchase and sale of merchandise inventory as well as the subsequent collection of cash from credit sales.

Sandy's Supply Store,Inc.,entered into the transactions listed below.In the journal provided,prepare Sandy's entries,assuming use of the perpetual inventory system.Omit explanations.

FOB shipping point means that the seller incurs the shipping costs.

The periodic inventory system provides an up-to-date amount of inventory on hand.

Which of the following documents is prepared by a company's accounting department?

A retailer accepted Visa charge sales totaling $1,500 and deposited the charge slips in the bank.Assuming a credit card discount expense of 4 percent,what would be the increase to Cash and the increase to Sales,respectively?

A company with a current ratio of 1.0 is considered more liquid than one with a current ratio of 2.0.

Assuming the use of the periodic inventory system,use the data below to calculate the net cost of purchases and the goods available for sale for the year ended December 31,2013.

Under an effective system of internal control,errors occur only as a result of fraud or dishonesty.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters