Acc 1 Final Exam Review

Acc 1 Final Exam Review

University

40 Qs

quiz-placeholder

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Acc 1 Final Exam Review

Acc 1 Final Exam Review

Assessment

Quiz

Business

University

Hard

Created by

SAMANTHA HART

Used 3+ times

FREE Resource

40 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Assume both Sampson Co. and Batson Co. use a perpetual inventory system. Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the merchandise sold is $38,500. Batson Co. paid the invoice within the discount period. What is the amount that should be debited to accounts receivable?

46,000

920

45,080

30,000

Answer explanation

The amount debited to accounts receivable is $45,080, which is the selling price of $46,000 minus the discount of $920 (2% of $46,000).

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

$25,500

$24,990

$16,000

$26,010

Answer explanation

The correct amount of sales from these transactions is $24,990, which is the result after applying the 2% discount to the original amount of $25,500.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

For Sullivan Company, the asset turnover increased from 1.25 to 1.50. This is an unfavorable change.

True

False

Answer explanation

The correct answer is False because an increase in asset turnover from 1.25 to 1.50 is actually a favorable change, indicating more efficient use of assets.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which term is applied to the excess of revenue from sales over the cost of merchandise sold?

net income

gross sales

income from operations

gross profit

Answer explanation

The term 'gross profit' is applied to the excess of revenue from sales over the cost of merchandise sold.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The inventory system employing accounting records that continuously disclose the amount of inventory is called

retail

perpetual

periodic

FIFO

Answer explanation

The inventory system employing accounting records that continuously disclose the amount of inventory is called perpetual.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following accounts has a normal debit balance?

Accounts Payable

Sales

Interest Revenue

Merchandise Inventory

Answer explanation

Merchandise Inventory has a normal debit balance, meaning an increase in this account is recorded as a debit entry.

7.

MATH RESPONSE QUESTION

2 mins • 1 pt

During the current year, merchandise is sold for $137,500 cash and $425,600 on account. The cost of the merchandise sold is $322,325. What is the amount of the gross profit?

Mathematical Equivalence

OFF

Answer explanation

$137,500 + $425,600 – $322,325 = $240,775

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