Question 1

When preparing an unadjusted trial balance using a periodic inventory system,the amount shown for merchandise inventory is:

Accepted Answer

A) The ending inventory amount. 
B) The beginning inventory amount. 
C) Equal to the cost of goods sold. 
D) Equal to the cost of goods purchased. 
E) Equal to the gross profit. 
A) The ending inventory amount. 
B) The beginning inventory amount. 
C) Equal to the cost of goods sold. 
D) Equal to the cost of goods purchased. 
E) Equal to the gross profit.

Question 2

A company had cash sales of $49,527,credit sales of $38,540,sales returns and allowances of $7,100,and sales discounts of $4,375.The company's net sales for this period equal:

Accepted Answer

A) $80,967. 
B) $83,692. 
C) $88,067. 
D) $76,592. 
E) $99,542. 
A) $80,967. 
B) $83,692. 
C) $88,067. 
D) $76,592. 
E) $99,542.

Question 3

A ___________ is an intermediary that buys products from manufacturers and sells to retailers.

Accepted Answer

The answer of A ___________ is an intermediary that buys...

Question 4

____________________ refer to merchandise that customers return to the seller after a sale.

Accepted Answer

The answer of ____________________ refer to merchandise that customers return...

Question 5

The acid-test ratio is also called the quick ratio.

Accepted Answer

A) True 
 B)False

Question 6

A merchandising company:

Accepted Answer

A) Earns net income by buying and selling merchandise. 
B) Receives fees only in exchange for services. 
C) Earns profit from commissions only. 
D) Earns profit from fares only. 
E) Buys products from consumers. 
A) Earns net income by buying and selling merchandise. 
B) Receives fees only in exchange for services. 
C) Earns profit from commissions only. 
D) Earns profit from fares only. 
E) Buys products from consumers.

Question 7

The year-end adjusted trial balance of ABC Supply for the current year is shown below:
   Prepare closing entries at December 31 for the current year.

Accepted Answer

Closing en

Question 8

Sales less sales discounts less sales returns and allowances equals:

Accepted Answer

A) Net purchases. 
B) Cost of goods sold. 
C) Net sales. 
D) Gross profit. 
E) Net income. 
A) Net purchases. 
B) Cost of goods sold. 
C) Net sales. 
D) Gross profit. 
E) Net income.

Question 9

Maia's Bike Shop uses the periodic inventory system and had the following transactions during the month of May:
   Prepare the required journal entries that Maia's Bike Shop must make to record these transactions.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 10

Identify and explain the key components of income for a merchandising company.

Accepted Answer

The basic components of income begin wit

Question 11

A company that uses the perpetual inventory system purchased merchandise inventory at a cost of $4,300 with credit terms 3/15,net 45.If the company elects to pay within the discount period,what would be the appropriate journal entry to record the payment?

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 12

________________________ refers to products that a company owns and intends to sell.

Accepted Answer

Merchandis

Question 13

List the steps of the operating cycle for a merchandiser with credit sales.

Accepted Answer

The steps are: (1) cash purcha

Question 14

A company purchased merchandise inventory at a cost of $8,500 with credit terms 2/10,net 60.If the company borrows $8,330 to pay for the purchase on the last day of the discount period and pays the loan plus interest in the amount of $8,466.93 on the last day of the credit period,what is the net savings?

Accepted Answer

A) $170.00 
B) $(33.07) 
C) $136.93 
D) $33.07 
E) There is no savings to the company 
A) $170.00 
B) $(33.07) 
C) $136.93 
D) $33.07 
E) There is no savings to the company

Question 15

Sagan Company uses the perpetual inventory method.On October 6,Sagan sold merchandise to Parley Co.for $20,000 under credit terms of 2/10,n/60.On October 9,Parley returned $5,000 of that merchandise.On October 15,Sagan received balance due from Parley Co.How would Sagan record this transaction?

Accepted Answer

A) Debit Cash for $20,000 and credit Accounts Receivable for $20,000. 
B) Debit Cash for $15,000 and credit Accounts Receivable for $15,000. 
C) Debit Cash for $14,700,debit Sales Discounts for $300,and credit Accounts Receivable for $15,000. 
D) Debit Cash for $14,700,debit Sales Discounts for $300,and credit Sales for $15,000. 
E) Debit Cash for $15,000,credit Sales Discounts for $300,and credit Accounts Receivable for $14,700 
A) Debit Cash for $20,000 and credit Accounts Receivable for $20,000. 
B) Debit Cash for $15,000 and credit Accounts Receivable for $15,000. 
C) Debit Cash for $14,700,debit Sales Discounts for $300,and credit Accounts Receivable for $15,000. 
D) Debit Cash for $14,700,debit Sales Discounts for $300,and credit Sales for $15,000. 
E) Debit Cash for $15,000,credit Sales Discounts for $300,and credit Accounts Receivable for $14,700

Question 16

Inventory shrinkage can be computed by comparing the ___________ of inventory with recorded quantities and amounts.

Accepted Answer

physical c

Question 17

A company purchased $6,000 of merchandise on credit with terms 4/15,n/30.How much will be debited to Accounts Payable if the company pays $800 cash on this account within 10 days?

Accepted Answer

A) $833.33 
B) $800.00 
C) Nothing will debited to Accounts Payable; the account should be credited in this situation. 
D) $5,760.00 
E) $5,333.33 
A) $833.33 
B) $800.00 
C) Nothing will debited to Accounts Payable; the account should be credited in this situation. 
D) $5,760.00 
E) $5,333.33

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Roller Blade Company uses the perpetual inventory system and had the following transactions during October:
   Prepare journal entries to record each of the preceding transactions.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 20

On October 1,Robertson Company sold merchandise in the amount of $5,800 to Alberts,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the perpetual inventory system.The journal entry or entries that Robertson will make on October 1 is:

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

When preparing an unadjusted trial balance using a periodic inventory system,the amount shown for merchandise inventory is:

A company had cash sales of $49,527,credit sales of $38,540,sales returns and allowances of $7,100,and sales discounts of $4,375.The company's net sales for this period equal:

A ___________ is an intermediary that buys products from manufacturers and sells to retailers.

____________________ refer to merchandise that customers return to the seller after a sale.

The acid-test ratio is also called the quick ratio.

A merchandising company:

The year-end adjusted trial balance of ABC Supply for the current year is shown below: Prepare closing entries at December 31 for the current year.

Sales less sales discounts less sales returns and allowances equals:

Maia's Bike Shop uses the periodic inventory system and had the following transactions during the month of May: Prepare the required journal entries that Maia's Bike Shop must make to record these transactions.

Identify and explain the key components of income for a merchandising company.

A company that uses the perpetual inventory system purchased merchandise inventory at a cost of $4,300 with credit terms 3/15,net 45.If the company elects to pay within the discount period,what would be the appropriate journal entry to record the payment?

________________________ refers to products that a company owns and intends to sell.

List the steps of the operating cycle for a merchandiser with credit sales.

Sagan Company uses the perpetual inventory method.On October 6,Sagan sold merchandise to Parley Co.for $20,000 under credit terms of 2/10,n/60.On October 9,Parley returned $5,000 of that merchandise.On October 15,Sagan received balance due from Parley Co.How would Sagan record this transaction?

Inventory shrinkage can be computed by comparing the ___________ of inventory with recorded quantities and amounts.

A company purchased $6,000 of merchandise on credit with terms 4/15,n/30.How much will be debited to Accounts Payable if the company pays $800 cash on this account within 10 days?

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

Roller Blade Company uses the perpetual inventory system and had the following transactions during October: Prepare journal entries to record each of the preceding transactions.

On October 1,Robertson Company sold merchandise in the amount of $5,800 to Alberts,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the perpetual inventory system.The journal entry or entries that Robertson will make on October 1 is:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 4: Reporting and Analyzing Merchandising Operations

When preparing an unadjusted trial balance using a periodic inventory system,the amount shown for merchandise inventory is:

A company had cash sales of $49,527,credit sales of $38,540,sales returns and allowances of $7,100,and sales discounts of $4,375.The company's net sales for this period equal:

A ___________ is an intermediary that buys products from manufacturers and sells to retailers.

____________________ refer to merchandise that customers return to the seller after a sale.

The acid-test ratio is also called the quick ratio.

A merchandising company:

The year-end adjusted trial balance of ABC Supply for the current year is shown below: Prepare closing entries at December 31 for the current year.

Sales less sales discounts less sales returns and allowances equals:

Maia's Bike Shop uses the periodic inventory system and had the following transactions during the month of May: Prepare the required journal entries that Maia's Bike Shop must make to record these transactions.

Identify and explain the key components of income for a merchandising company.

A company that uses the perpetual inventory system purchased merchandise inventory at a cost of $4,300 with credit terms 3/15,net 45.If the company elects to pay within the discount period,what would be the appropriate journal entry to record the payment?

________________________ refers to products that a company owns and intends to sell.

List the steps of the operating cycle for a merchandiser with credit sales.

Sagan Company uses the perpetual inventory method.On October 6,Sagan sold merchandise to Parley Co.for $20,000 under credit terms of 2/10,n/60.On October 9,Parley returned $5,000 of that merchandise.On October 15,Sagan received balance due from Parley Co.How would Sagan record this transaction?

Inventory shrinkage can be computed by comparing the ___________ of inventory with recorded quantities and amounts.

A company purchased $6,000 of merchandise on credit with terms 4/15,n/30.How much will be debited to Accounts Payable if the company pays $800 cash on this account within 10 days?

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

Roller Blade Company uses the perpetual inventory system and had the following transactions during October: Prepare journal entries to record each of the preceding transactions.

On October 1,Robertson Company sold merchandise in the amount of $5,800 to Alberts,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the perpetual inventory system.The journal entry or entries that Robertson will make on October 1 is:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters