Question 1

_________________ are the amounts and timing of payment from a buyer to a seller stated on the invoice.

Accepted Answer

The answer of _________________ are the amounts and timing of...

Question 2

The operating cycle for a merchandiser that makes only cash sales moves from:

Accepted Answer

A) Purchases of merchandise to inventory to cash sales. 
B) Purchases of merchandise to inventory to accounts receivable to cash sales. 
C) Inventory to purchases of merchandise to cash sales. 
D) Accounts receivable to purchases of merchandise to inventory to cash sales. 
E) Accounts receivable to inventory to cash sales. 
A) Purchases of merchandise to inventory to cash sales. 
B) Purchases of merchandise to inventory to accounts receivable to cash sales. 
C) Inventory to purchases of merchandise to cash sales. 
D) Accounts receivable to purchases of merchandise to inventory to cash sales. 
E) Accounts receivable to inventory to cash sales.

Question 3

Fill in the blanks (a) through (g) for the Morrison Company, Inc. for each of the income statements for 2015, 2016, and 2017.

Accepted Answer

@#IMG-DLM& (a) 2,770 + 375 - 2400 = 745
(b) 375, t

Question 4

Prentice Company, Inc. had cash sales of $94,275, credit sales of $83,450, sales returns and allowances of $1,700, and sales discounts of $3,475. Prentice's net sales for this period equal:

Accepted Answer

A) $94,275. 
B) $172,550. 
C) $174,250. 
D) $176,025. 
E) $177,725. 
A) $94,275. 
B) $172,550. 
C) $174,250. 
D) $176,025. 
E) $177,725.

Question 5

An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called:

Accepted Answer

A) Sales discounts. 
B) Trade discounts. 
C) Purchases discounts. 
D) Discounts lost. 
E) Discounts earned. 
A) Sales discounts. 
B) Trade discounts. 
C) Purchases discounts. 
D) Discounts lost. 
E) Discounts earned.

Question 6

A ______________________ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Accepted Answer

The answer of A ______________________ income statement includes cost of...

Question 7

A period's beginning inventory is equal to the prior period's ___________________.

Accepted Answer

The answer of A period's beginning inventory is equal to...

Question 8

Under a periodic inventory system, transactions for purchases, purchase returns and allowances, purchase discounts, and transportation-in transactions are recorded in the Merchandise Inventory account.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Beginning inventory plus net purchases equals:

Accepted Answer

A) Cost of goods sold. 
B) Merchandise available for sale. 
C) Ending inventory. 
D) Sales. 
E) The inventory amount shown on the balance sheet. 
A) Cost of goods sold. 
B) Merchandise available for sale. 
C) Ending inventory. 
D) Sales. 
E) The inventory amount shown on the balance sheet.

Question 11

Cash sales shorten the operating cycle for a merchandiser; credit sales lengthen operating cycles.

Accepted Answer

A) True 
 B)False

Question 12

Sabor Company, Inc. uses the gross method of accounting for purchases and a perpetual inventory system. It purchased $17,800 of merchandise on April 7 with credit terms of 1/10, n/30. Merchandise with a cost of $1,800 was damaged and returned to the seller on April 10. On April 16 the company paid the amount due. Prepare the journal entries to record the transactions on all three dates.

Accepted Answer

The answer of Sabor Company, Inc. uses the gross method...

Question 13

Craig's Snowboards, Inc. uses the gross method of accounting for sales and a perpetual inventory system and had the following sales transactions during June:   Prepare the journal entries to record these transactions.

Accepted Answer

The answer of Craig's Snowboards, Inc. uses the gross method...

Question 14

Non-operating activities reported on the income statement that include interest, dividend, and rent revenues, and gains from asset disposals are called _____________________________.

Accepted Answer

other reve

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Match the following terms with the appropriate definitions.

Accepted Answer

The answer of Match the following terms with the appropriate...

Question 17

A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Accepted Answer

A) True 
 B)False

Question 18

Multiple-step income statements:

Accepted Answer

A) Are required by the FASB and IASB. 
B) Contain more detail than a simple listing of revenues and expenses. 
C) Are required for the periodic inventory system. 
D) List cost of goods sold as an operating expense. 
E) Are only used in perpetual inventory systems. 
A) Are required by the FASB and IASB. 
B) Contain more detail than a simple listing of revenues and expenses. 
C) Are required for the periodic inventory system. 
D) List cost of goods sold as an operating expense. 
E) Are only used in perpetual inventory systems.

Question 19

A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.
$20/$1,000 = 2% discount

Accepted Answer

A) True 
 B)False

Question 20

Credit terms of 2/10, n/30 imply that the seller offers the purchaser a 2% cash discount if the amount is paid within 10 days of the invoice date. Otherwise, the full amount is due in 30 days.

Accepted Answer

A) True 
 B)False

_________________ are the amounts and timing of payment from a buyer to a seller stated on the invoice.

The operating cycle for a merchandiser that makes only cash sales moves from:

Fill in the blanks (a) through (g) for the Morrison Company, Inc. for each of the income statements for 2015, 2016, and 2017.

Prentice Company, Inc. had cash sales of $94,275, credit sales of $83,450, sales returns and allowances of $1,700, and sales discounts of $3,475. Prentice's net sales for this period equal:

An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called:

A ______________________ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

A period's beginning inventory is equal to the prior period's ___________________.

Under a periodic inventory system, transactions for purchases, purchase returns and allowances, purchase discounts, and transportation-in transactions are recorded in the Merchandise Inventory account.

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

Beginning inventory plus net purchases equals:

Cash sales shorten the operating cycle for a merchandiser; credit sales lengthen operating cycles.

Craig's Snowboards, Inc. uses the gross method of accounting for sales and a perpetual inventory system and had the following sales transactions during June: Prepare the journal entries to record these transactions.

Non-operating activities reported on the income statement that include interest, dividend, and rent revenues, and gains from asset disposals are called _____________________________.

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

Match the following terms with the appropriate definitions.

A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Multiple-step income statements:

A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment. $20/$1,000 = 2% discount

Credit terms of 2/10, n/30 imply that the seller offers the purchaser a 2% cash discount if the amount is paid within 10 days of the invoice date. Otherwise, the full amount is due in 30 days.

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

Reporting and Analyzing Partnerships

Filters

Exam 4: Reporting and Analyzing Merchandising Operations

_________________ are the amounts and timing of payment from a buyer to a seller stated on the invoice.

The operating cycle for a merchandiser that makes only cash sales moves from:

Fill in the blanks (a) through (g) for the Morrison Company, Inc. for each of the income statements for 2015, 2016, and 2017.

Prentice Company, Inc. had cash sales of $94,275, credit sales of $83,450, sales returns and allowances of $1,700, and sales discounts of $3,475. Prentice's net sales for this period equal:

An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called:

A ______________________ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

A period's beginning inventory is equal to the prior period's ___________________.

Under a periodic inventory system, transactions for purchases, purchase returns and allowances, purchase discounts, and transportation-in transactions are recorded in the Merchandise Inventory account.

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

Beginning inventory plus net purchases equals:

Cash sales shorten the operating cycle for a merchandiser; credit sales lengthen operating cycles.

Craig's Snowboards, Inc. uses the gross method of accounting for sales and a perpetual inventory system and had the following sales transactions during June: Prepare the journal entries to record these transactions.

Non-operating activities reported on the income statement that include interest, dividend, and rent revenues, and gains from asset disposals are called _____________________________.

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

Match the following terms with the appropriate definitions.

A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Multiple-step income statements:

A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment. $20/$1,000 = 2% discount

Credit terms of 2/10, n/30 imply that the seller offers the purchaser a 2% cash discount if the amount is paid within 10 days of the invoice date. Otherwise, the full amount is due in 30 days.

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

Reporting and Analyzing Partnerships

Filters