acc 101 4

QN=218 Which of the following accounts is not increased by a credit

• a. Revenue

• b. Liability

• c. Asset

• d. Owner's equity

• e. None of these

QN=219 When a sale is made with the credit terms of 2/10, net 30, the "2" refers to the:

• a. Interest rate

• b. Selling day

• c. Payment Due date

• d. Discount rate

• e. None of these

QN=220 On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much would the seller receive if the buyer pays on June 8?

• a. 790

• b. 792

• c. 240

• d. 800

• e. 232

QN=221 Selling 1,000 products for a customer and collected $2,000 cash. Recording this transaction:

• a. Debit Cash $ 1,000 and credit Revenue $1,000

• b. Credit Cash $ 2,000 and Debit Revenue $2,000

• c. Debit Cash $2,000 and Unearned Revenue $2,000

• d. Credit Cash $ 2,000 and Debit Unearned Revenue $2,000

• e. Debit Cash $ 2,000 and credit Revenue $2,000

QN=222 Net Sales minus Cost of Goods Sold equals to:

• a. Profit

• b. Gross profit

• c. Net income

• d. Profit before tax

• e. Profit after tax

QN=223 Which statement is true:

• a. Merchandise available for sale includes Beginning inventory and ending inventory

• b. Merchandise available for sale includes Beginning inventory and cost of goods sold.

• c. Merchandise available for sale includes Beginning inventory and Net cost of purchases

• d. Merchandise available for sale includes ending inventory and Net cost of purchases.

• e. None of these

QN=224 Which statement is true?

• a. Ending inventory is equal to merchandise available for sale minus beginning inventory.

• b. Ending inventory is equal to merchandise available for sale minus cost of goods sold.

• c. Ending inventory is equal to merchandise available for sale minus net cost of purchases.

• d. Beginning inventory is equal to merchandise available for sale minus cost of goods sold.

• .e. None of these.

QN=225 Calculated as sales minus all costs directly related to those sales. It is about:

• a. Cost of goods sold

• b. Expense

• c. Revenue

• d. Gross profit

• e. Profit

QN=226 Which discounts are offered based on quantities purchased

• a. Credit discounts

• b. Trade discounts

• c. Purchase discounts

• d. Payment discounts

• e. None of these

QN=227 Which discounts are provided to customers as an incentive for them to pay early

• a. Credit discounts

• b. Trade discounts

• c. Purchase discounts

• d. Payment discounts

• e. None of these