SCI- Merchandising Business / Statement of Changes in Equity

Gross profit equals to the difference between net sales and

• cost of sales plus operating expenses

• cost of sales

• operating expenses

• profit

Which of the following is not considered an operating expense?

• Administrative expenses

• Selling expenses

• Cost of goods sold

• Freight-out

Which of the following is not considered in computing net cost of purchases?

• Purchases

• Purchase returns and allowances

• Transportation paid on purchased goods

• Transportation paid on goods shipped to customers

Purchase discount is a contra account to ________________.

The entry to record the return of goods from a customer includes a debit to ______________ and credit Cash/Accounts receivable.

• Purchase returns and allowances

• Purchase discount

• Sales discount

• Sales returns and allowances

This results when expenses exceed the total revenue for a given period of time.

• Net income

• Net loss

• Gain on sale

• Loss on sale

A business owned by one person is called __________________.

If gross profit is P55,000 and cost of sales is P125,000, how much is your total net sales?

A corporation’s unit of ownership is called ______.

• stock

• par value

• share premium

• retained earnings

What is the full name of your subject teacher? (bonus question)