The vertical analysis ratio for gross profit is calculated by dividing gross profit by net sales.

An amount recorded in the Accounts Receivable Debit column of a sales journal is posted to the customer’s account when the transaction is journalized.

A cost that can be controlled by a department manager is reported on a departmental margin statement as a direct expense.

The issuance of common stock would be reported as an investing activity on the statement of cash flows.

After special journals have been proved and ruled, column totals from the special amount columns are posted to the general ledger accounts indicated in the column headings.

The amount recorded in the Cash Credit column of the cash payments journal for the payment of payroll equals net pay.

Merchandising businesses often use a point-of-sale terminal to process cash and credit card sales.

Net income increases the retained earnings of a corporation as shown on the statement of stockholders’ equity.

A periodic count of inventory yields a cost of boats inventory less than the balance in Merchandise Inventory—Boats. The adjusting entry will include a credit to Income

Summary—General.

A merchandise inventory determined by counting, weighing, or measuring items of

inventory on hand is a periodic inventory.

When amounts are posted from the sales journal to the customers’ accounts, the customer number is recorded in the Post. Ref. column of the sales journal.

Management’s target range for direct expenses is 24% to 25%. A decrease in actual direct expenses from 24.5% to 23.8% is a positive trend.

A form prepared by the customer, showing the price deduction taken by the customer for returns and allowances, is known as a debit memorandum.

Total shares of ownership in a corporation are called capital stock.

Assets that will be used for a number of years in the operation of a business are called book assets.

In a departmental payroll register, administrative salaries represent the earnings of all non-departmental personnel.

The total amount earned by all employees for a pay period is known as net employee earnings.

A list of vendor accounts, account balances, and the total amount due to all vendors is a schedule of accounts payable.

Transferring information from a journal entry to a ledger account is known as recording.

Journal entries that update general ledger accounts at the end of the fiscal period are closing entries.

The credit entry recording a sales return and allowance would be posted to the accounts receivable and general ledgers.

The total amount shown on a sales invoice includes the price of the merchandise plus the sales tax.

The series of accounting activities included in recording financial information for a fiscal period is known as the accounting cycle.

In most states, unemployment taxes are paid by the employer and the employee.

The amount of cash used to purchase equipment can be found on the

The amount of cash paid for merchandise purchases would appear in which section of the statement of cash flows?

The amount of dividends declared during the year can be found on the

A tax base is

The source document for all purchases on account is a

Which of the following transactions on a cash payments journal would NOT be posted individually to the general ledger?

Depositing payroll checks directly to an employee’s checking or savings account is called

A proof of the equality of debits and credits in a general ledger is a

If a company allows its customers to take a 1% discount if payment is made within 15 days and the entire amount is due in 30 days, the terms are stated as

In a departmental accounting system, Dividends is closed to

When the petty cash fund is replenished, the debit is made to

Which of the following is NOT withheld from employees’ pay each payroll period?

Which of the following CANNOT be determined from reviewing the departmental margin statement?

In a departmental accounting system, each department calculates

Financial information that a business records is summarized in

In a departmental accounting system, which of the following is NOT analyzed by

department?

The source document used for a sales returns and allowances transaction is a

Total earnings less total deductions equals

When recording a purchase in the purchases journal, what is written in the Account

Credited column?

A form prepared by the customer showing a price reduction for purchases returns and allowances is called a

The beginning merchandise inventory for the Interiors Department was $62,400.00. The periodic inventory taken on December 31 shows that the cost of merchandise on hand is $60,500.00. The adjusting entry to bring the Merchandise Inventory account up to date includes a $1,900.00

Which of the following is NOT an adjusting entry?

GDP Entertainment reported net sales of $334,000.00 and a cost of merchandise sold of $210,000.00. Its vertical analysis ratio for gross profit is

The amount of cash received when a $100.00 sale, plus sales tax of 5%, is collected within the 2/10, n/30 discount period is $98.00.

Overtime pay is paid for hours worked in excess of eight hours per day. The typical overtime rate is $5.00 more than the regular hourly rate. 

To determine the inventory cost using the lower of cost or market, a business compares the cost of inventory using its normal inventory costing method (FIFO, LIFO, or weighted-average) to the current replacement cost of the inventory. The inventory is valued at whichever cost is lower.

For a department having a target departmental margin target range of 37% to 38%, an increase in the ratio from 34% to 35% is a favorable trend.

Sold a boat on account to Robson Randle, $9,000.00, plus sales tax, $450.00; total, $9,450.00. S777.  

The general ledger account(s) debited for this transaction is (are)

Total sales for the month were $15,848. Sales discounts were $158, and sales returns and allowances were $672. Kelly Mann is paid a 2% commission on net sales. Her commission
for the month amounted to

Current period earnings are $900. Deductions for the payroll period are $150. The previous period’s accumulated earnings are $12,000. The new accumulated earnings are

The accounting principle being applied when the same accounting procedures are used regardless of whether checks are issued to employees or automatic check deposit or electronic funds transfer is used for payroll is

The following selected data are taken from the inventory records of Edwards, Inc.:

Inventory item S10 had 200 units at a unit price of $17.00 in inventory on January 1.

The first purchase during the year was for 400 units at $18.00.

The second purchase was for 400 units at $19.00.  

The December 31 inventory consisted of 500 units.

The total cost of the ending inventory using the LIFO method is

The debit balance in Allowance for Uncollectible Accounts is $200. Based on an aging of accounts receivable, the company expects that $4,200 of accounts receivable will become uncollectible. The amount of the adjusting entry to Allowance for Uncollectible Accounts will be a

Lanna Arts had $300,000 in net sales for the year. Its adjusting entry for estimated uncollectible accounts expense was $6,000. What is the percentage of net sales that is estimated to become uncollectible?

The beginning book value of accounts receivable is $60,000. The ending book value of accounts receivable is $70,000. The average book value of accounts receivable is

Received cash on account from Robson Randle, covering Sales Invoice No. 777, less 2% discount. (Original transaction = Sold a boat on account to Robson Randle, $9,000.00, plus sales tax, $450.00; total, $9,450.00)

The amount of cash received for this transaction is