WorksheetsBAF3M Unit 5 Merchandise Inventory
Total questions: 9
Worksheet time: 5mins
Name
Class
Date
1.
Nets Sales =
a)
Sales - Expenses
b)
Sales - Discounts - Returns & Allowances
c)
Sales - COGS
d)
Gross Sales
2.
A wholesaler...
a)
Buys from manufacturers
b)
Buys from retailers
c)
Sells to manufacturers
d)
Is not a word
3.
COGS
a)
Beg Inv + Purch. + End. Inv.
b)
Beg. Inv + Purch. - End. Inv
c)
Beg Inv. - Purch + End Inv.
d)
COGAFS + End Inv
4.
Freight-in is...
a)
cost of shipping inventory from the wholesaler to the retail business.
b)
cost of shipping inventory from the retailer to the customer.
c)
Is an Operating Expense
d)
Is not part of Cost of Goods Sold
5.
Gross Profit =
a)
Net Sales - COGS
b)
Gross Sales - COGS
c)
Net Profit
d)
Net Sales - Expenses
6.
Net Income=
a)
Gross Profit - Expenses
b)
Net Sales - COGS
c)
Net Sales - COGS + Gross Profit
d)
Gross Sales + Expenses
7.
Cost of Goods Available for Sale (COGAS):
a)
Beg. Inv + Purchases
b)
Beg Inv. - Purchases
c)
COGS - Purchases
d)
Sales - COGS
8.
You're the seller and the buyer returns an item they purchased (on credit) the entry is:
a)
Dr. Sales Returns/Cr. AR
b)
Dr. AR/Cr. Sales Returns
c)
Dr. Sales Return/Cr. Cash
d)
Dr. Inventory/Cr. AR
9.
Periodic Inventory
a)
Is the best form of accounting for inventory.
b)
Is used by small businesses with limited inventory.
c)
Is used by large businesses with lots of inventory
d)
Requires the use of inventory software.
100 %
