Accounting

Which of the following accounts represents the revenue earned from selling merchandise?

• Service Income

• Sales

• Miscellaneous Income

• Rental Income

A reduction from the sales account due to goods returned by the buyer is known as:

• Sales Discount

• Sales Returns & Allowances

• Purchase Returns & Allowances

• Freight Out

The account title used for income earned by professionals like lawyers, doctors, and accountants is:

• Service Revenue

• Professional Income

• Miscellaneous Income

• Rental Income

What is the account title used for income received from renting out a building or space?

• Interest Income

• Rental Income

• Miscellaneous Income

• Service Income

Income earned from lending money, typically covered by a promissory note, is recorded under:

• Interest Income

• Rental Income

• Miscellaneous Income

• Service Income

Income earned from activities not related to the main line of business is recorded as:

• Interest Income

• Rental Income

• Miscellaneous Income

• Service Income

In the periodic inventory system, the cost of merchandise purchased is recorded as:

• Merchandise Inventory

• Purchases

• Cost of Sales

• Purchase Returns & Allowances

Which account represents the cost of goods sold during the period?

• Cost of Sales

• Freight In

• Purchases

• Merchandise Inventory

Transportation costs incurred when buying goods are recorded under:

• Freight Out

• Freight In

• Cost of Sales

• Repairs and Maintenance

A reduction from purchases due to goods returned to suppliers under the periodic inventory system is called:

• Sales Returns & Allowances

• Purchase Discounts

• Purchase Returns & Allowances

• Freight Out