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Accounting Principles I - Meeting 3

Total questions: 10

Worksheet time: 11mins

Name
Class
Date
1.

Which one is the correct perpetual system for recording sales?

a)
b)
2.

PW sold merchandise to Sauk on account $3,500 with the cost of goods sold $1,500. Which one is the correct answer for the sales recording for periodic system?

a)
b)
c)
d)
3.

Sales discount is offered to customers to (a)   of balance due

4.

Free on Board Shipping Point

a)

Ownership of goods passes to buyer when public carrier accepts group from seller

b)

Ownership of goods remains with seller until the goods reach buyer

5.

What kind of cost flow assumptions?

a)

Last In, First Out (LIFO)

b)

Average Cost

c)

First In, First Out (FIFO)

6.

Cost of Goods Sold equation

a)

COGS = Beginning Inventory - Cost of Goods Purchased - Ending Goods

b)

COGS = Beginning Inventory + Cost Of Goods Purchased - Ending Goods

c)

COGS = Liabilities + Owner's Equity

d)

COGS = Beginning Inventory - Cost of Goods Purchased + Ending Goods

7.

Cost of goods sold = $30,000

Beginning Inventory = $20,000

Ending Inventory = $12,000

Cost of goods purchased = ?

NB: Remember to use (,) as the thousand separator

(a)  

8.

What is this type of cost flow assumptions?

(a)  

9.

If Sauk Stereo (the buyer) pays Public Carrier Co. $150

for freight charges on May 6, the entry on Sauk Stereo’s books is.

4 lines
10.

If the freight terms on the invoice in the question before had required

PW Audio Supply (the seller) to pay the freight charges, the entry

by PW Audio Supply would be:

4 lines