A company uses the perpetual inventory system and recorded the following entry: \[\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 2,500 & \\ \hline \text { Merchandise Inventory } & & 50 \\ \hline \text { Cash } & & 2,450 \\ \hline \end{array}\] This entry reflects a:

A) Purchase B) Return C) Sale D) Payment of the account payable and recognition of a cash discount taken E) Purchase and recognition of a cash discount taken A) Purchase B) Return C) Sale D) Payment of the account payable and recognition of a cash discount taken E) Purchase and recognition of a cash discount taken

Exam 4: Accounting for Merchandising Operations

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A company reported the following information for the month of November: Sales \ 50,475 Sales discounts 235 Sales returns and allowances 2,840 Cost of goods sold 33,975 Required: Calculate this company's gross margin ratio.

(Essay)

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Question 41

A company uses the perpetual inventory system and recorded the following entry: Accounts Payable 2,500 Merchandise Inventory 50 Cash 2,450 This entry reflects a:

(Multiple Choice)

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Question 42

A company has the following accounts. What is the acid test ratio?

(Multiple Choice)

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Question 43

A wholesaler is an intermediary that buys products from manufacturers or other wholesalers and sells them to consumers.

(True/False)

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Question 44

The periodic inventory system requires updating the inventory account only at the end of the period to reflect the quantity and cost of both the goods available and the goods sold.

(True/False)

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Question 45

The agreement regarding the amounts and timing of payment from a buyer to a seller are the ____________________.

(Short Answer)

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Question 46

If goods are shipped FOB shipping point, the seller does not record revenue from the sale until the goods arrive at their destination because the transaction is not complete until that point.

(True/False)

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Question 47

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

(Multiple Choice)

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Question 48

J.C. Penny had net sales of $28,496 million, its cost of goods sold was $19,092 million and its net income was $997 million. Its gross margin ratio equals:

(Multiple Choice)

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Question 49

Beginning inventory plus the net cost of purchases is the _____________________.

(Short Answer)

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Question 50

Purchase allowances refer to merchandise a buyer acquires but then returns to the seller.

(True/False)

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Question 51

A company has sales of $1,500,000, sales discounts of $102,000, sales returns and allowances of $123,000, shipping charges of $15,000, sales commissions of $34,000,net income totaled $263,500, and cost of goods sold of $420,000. What is the gross profit/margin ratio?

(Multiple Choice)

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Question 52

Scuba Company had net income on the current year's income statement in the amount of $800,000, other expense in the amount of $400,000 and a gross profit ratio of 58%, what was the amount of net sales on the income statement?

(Short Answer)

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Question 53

Credit terms include the specifics regarding the amount owed and timing of payments from a buyer to a seller.

(True/False)

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Question 54

Why does Selena and Khary Cuffe's company, Heritage Link Brands, use a perpetual inventory system?

(Essay)

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Question 55

A company's cost of goods sold was $4,000. Determine net purchases and ending inventory given goods available for sale were $11,000 and beginning inventory was $5,000.

(Multiple Choice)

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Question 56

Sales Discounts, Sales Returns and Allowances and Cost of Goods Sold are all closed to the Income Summary account with debits.

(True/False)

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Question 57

From the adjusted trial balance for Worker Products, prepare the necessary closing entries.

(Essay)

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Question 58

Trade discounts are recorded in a Trade Discounts account in the accounting system.

(True/False)

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Question 59

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

(Multiple Choice)

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Question 60

Showing 41 - 60 of 195

Exam 4: Accounting for Merchandising Operations

A company reported the following information for the month of November: Sales \ 50,475 Sales discounts 235 Sales returns and allowances 2,840 Cost of goods sold 33,975 Required: Calculate this company's gross margin ratio.

A company uses the perpetual inventory system and recorded the following entry: Accounts Payable 2,500 Merchandise Inventory 50 Cash 2,450 This entry reflects a:

A company has the following accounts. What is the acid test ratio?

A wholesaler is an intermediary that buys products from manufacturers or other wholesalers and sells them to consumers.

The periodic inventory system requires updating the inventory account only at the end of the period to reflect the quantity and cost of both the goods available and the goods sold.

The agreement regarding the amounts and timing of payment from a buyer to a seller are the ____________________.

If goods are shipped FOB shipping point, the seller does not record revenue from the sale until the goods arrive at their destination because the transaction is not complete until that point.

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

J.C. Penny had net sales of $28,496 million, its cost of goods sold was $19,092 million and its net income was $997 million. Its gross margin ratio equals:

Beginning inventory plus the net cost of purchases is the _____________________.

Purchase allowances refer to merchandise a buyer acquires but then returns to the seller.

A company has sales of $1,500,000, sales discounts of $102,000, sales returns and allowances of $123,000, shipping charges of $15,000, sales commissions of $34,000,net income totaled $263,500, and cost of goods sold of $420,000. What is the gross profit/margin ratio?

Scuba Company had net income on the current year's income statement in the amount of $800,000, other expense in the amount of $400,000 and a gross profit ratio of 58%, what was the amount of net sales on the income statement?

Credit terms include the specifics regarding the amount owed and timing of payments from a buyer to a seller.

Why does Selena and Khary Cuffe's company, Heritage Link Brands, use a perpetual inventory system?

A company's cost of goods sold was $4,000. Determine net purchases and ending inventory given goods available for sale were $11,000 and beginning inventory was $5,000.

Sales Discounts, Sales Returns and Allowances and Cost of Goods Sold are all closed to the Income Summary account with debits.

From the adjusted trial balance for Worker Products, prepare the necessary closing entries.

Trade discounts are recorded in a Trade Discounts account in the accounting system.

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

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Decentralization and Performance Evaluation

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Investments and International Operations

Accounting for Partnerships

Appendix : Accounting With Special Journals

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