Accounting Quiz #2

What is the amount of the Sales Discount?

• $3,542.20

• $3,024.90

• $3,654.80

• $3,028.90

Answer explanation

Sales $189,540 - Sales Returns & Allowances $3,073.50 - Net Sales $183,441 = Sales Discounts $3,024.90

189,540-3,073.50= 186,466.50

186,466.50-183,441.60=3,024.90

What is the amount of the beginning inventory?

• $226,320

• $256,564

• $225,321

• $278,456

Answer explanation

Cost of Merchandise Available for Sale $304,783.50 - Net Purchases $78,463.50 = Beginning Merchandise Inventory $226,320.00

304,783.50-78,463.50=226,320.00

What is the amount of the purchases?

• $85,741

• $85,474

• $85,654

• $85,250

Answer explanation

Cost of Delivered Goods $86,100 - Transportation In $850 = Purchases $85,250

86,100-850=85,250

What is the amount of the Purchases Returns & Allowances?

• $3,310.20

• $3,412.20

• $3,854.00

• $3,985.21

Answer explanation

Cost of Delivered Goods $86,100 - Purchases Discounts $4,326.30 - Net Purchases $78,463.50 = Purchases Returns & Allowances $3,310.20

86,100-4,326.30-78,463.50=3,310.20

What is the amount of the Cost of Merchandise Sold?

• $86,123.60

• $87,456.10

• $86,013.50

• $86,623.50

Answer explanation

Cost of Merchandise Available for Sale $304,783.50 - Ending Inventory $218,770.00 = Cost of Merchandise Sold $86,013.50

304,783.50-218,770=86,013.50

What is the amount of the Gross Profit?

• $97,428.10

• $97,656.10

• $96,413.56

• $96,623.78

Answer explanation

Net Sales $183,441.60 - Cost of Merchandise Sold $86,013.50 = Gross Profit $97,428.10

183,441.60-86,013.50=97,428.10

What is the amount of the Net Income or (Net Loss)?

• $62,428.10

• $62,656.50

• $62,123.56

• $62,588.10

Answer explanation

Gross Profit $97,428.10 - Total Expenses $34,840.00 = Net Income $62,588.10

97,28.10-34,840=62,588.10

What is the component percent for Net Sales? (Round to the nearest tenth of a percent.)

• 100%

• 102%

• 55%

• 62%

Answer explanation

Sales is a base item--all base items are 100%

What is the component percent for Sales? (Round to the nearest tenth.)

• 100%

• 103.3%

• 101.5%

• 89.5%

Answer explanation

Sales $189.540 / Net Sales $183,441.60 = Sales component % of 103.3%

What is the component percent for beginning merchandise inventory?

(Round to the nearest tenth.)

• 123.9%

• 123.8%

• 123.4%

• 123.6%

Answer explanation

Beginning Inventory $226,320.00 / Net Sales $183,441.60 = Beginning Inventory Component % of 123.4%