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Accounting for Merchandise

Authored by wahyu firmandani

Business, Education

1st - 3rd Grade

Used 16+ times

Accounting for Merchandise
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10 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 10 pts

1The most important differences between a service business and a retail business are reflected in their operating cycles and financial statements.

True

False

2.

MULTIPLE CHOICE QUESTION

30 sec • 10 pts

Merchandise inventory is classified on the balance sheet as a

current liability

current asset

long-term asset

long-term liability

3.

MULTIPLE CHOICE QUESTION

30 sec • 10 pts

What is the term applied to the excess of net revenue from sales over the cost of merchandise sold

gross profit

income from operations

net income

gross sales

4.

MULTIPLE CHOICE QUESTION

30 sec • 10 pts

1Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45.  The Pound Co. paid the invoice within the discount period.  What is amount of net sales from the above transactions?

$25,500

$26,010

$24,990

$16,000

5.

MULTIPLE CHOICE QUESTION

30 sec • 10 pts

Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a

debit to Sales

debit to Merchandise Inventory

credit to Merchandise Inventory

credit to Accounts Receivable

6.

MULTIPLE CHOICE QUESTION

30 sec • 10 pts

If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as

FOB shipping point

FOB destination

FOB n/30

FOB seller

7.

MULTIPLE CHOICE QUESTION

30 sec • 10 pts

When the perpetual inventory system is used, the inventory sold is debited to

Supplies Expense

Cost of Merchandise Sold

Merchandise Inventory

Sales

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