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WorksheetsBAF 10.2 Review
Total questions: 20
Worksheet time: 15mins
The final inventory figure appears on the following:
Balance sheet only
Income statement only
Chart of accounts
Balance sheet & income statement
Under a periodic inventory system, which of these figures is not known during the accounting period?
Ending inventory
Cost of Goods Sold
Increase in capital
All of the above
The Cost of Goods Sold calculation starts with:
Purchases
Beginning Inventory
Ending Inventory
Freight Cost
Merchandise inventory is kept in which 2 accounts?
Purchases & Inventory
Beginning Inventory & Ending Inventory
Inventory & COGS
COGS & Purchases
The Merchandise Inventory account normally shows the inventory figure as of:
the first day of the fiscal period
the date the inventory was purchased
the last day of the fiscal period
there is no such account
When is the merchandise inventory account adjusted?
with each inventory purchase
at the end of every month
each time inventory is counted
at the end of the fiscal period
Merchandise purchased during the fiscal period is debited to which account?
COGS
Inventory
Purchases
Inventory Expense
If merchandise is purchased on account, what account is debited?
Inventory
Purchases
Bank
COGS
If a tire company purchases office supplies for cash, what account is debited?
Bank
Inventory
Supplies
Purchases
If a tire company purchases tires for re-sale, what account is debited?
Supplies
Purchases
Inventory
COGS
In a merchandising company, the Revenue account is usually called:
Fees Earned
Merchandise Revenue
Products Sold
Sales
Transportation charges on incoming goods for re-sale are called:
Freight-In
Transportation Expense
COGS
Truck Expense
If a tire company sells a set of tires, what DR and CR is used to record the transaction?
DR Cash, CR Inventory, CR HST Payable
DR Sales, DR HST Recoverable, CR Inventory,
DR Accounts Receivable, CR HST Payable, CR Sales
DR Accounts Receivable, CR HST Payable, CR Inventory
If a tire company sells a set of tires, when is the decrease in inventory recorded?
Immediately
At the end of the fiscal period
When closing entries are completed
At the end of the day the sale is made on
Which of the following payments by McCann Hardware should be recorded by debiting Purchases?
Purchase of a delivery truck
Payment of freight charges
Purchase of miscellaneous hardware items for resale
Both purchase of merchandise AND payment of freight charges
Beginning Inventory plus Purchases plus Freight-In equals:
Cost of Goods Available for Sale
Cost of Goods Sold
Gross Profit
Net Purchases
Beginning Inventory plus Purchases plus Freight-In minus Ending Inventory equals:
Cost of Goods Available for Sale
Cost of Goods Sold
Gross Profit
Net Purchases
If the ending inventory is OVERSTATED by $2000 at the end of the period, then:
COGS will be understated
Gross profit will be overstated
Net income will be overstated
All of the above
Both COGS and Gross Profit will be overstated
The cost price of a good is $36. The selling price is $50. What is the gross margin?
$36
1.38
28%
72%
The cost price of a good is $36. The selling price is $50. What is the mark-up percent?
$14
39%
28%
139%
