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Worksheets4A28_mini Quiz 2-session 5
Total questions: 10
Worksheet time: 7mins
Sales revenue minus operating expenses equals gross profit.
true
false
Under a perpetual inventory system, cost of goods sold is determined each time a sale occurs.
true
false
The terms 2/10, net/30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period.
false
true
Travis Corporation purchases merchandise on account from Jackson Company, terms 2/10, n/30. Travis and Jackson both use periodic inventory systems. If Travis pays within the discount period, Jackson will
credit the amount of the discount to Cash.
debit the amount of the discount to Sales Discounts.
credit the amount of the discount to Purchases Discounts
credit the amount of the discount to Sales Revenue.
Which of the following statements about comprehensive income is not true?
Comprehensive income includes net income
Comprehensive income is a more inclusive measure of earnings than net income.
An example of an item reported in comprehensive income but not net income is gains and losses on foreign currency translations
Unrealized gains and losses from fair value adjustments are included in net income but not comprehensive income
Financial information is presented below:
Operating expenses $ 40,000
Sales revenue 200,000
Cost of goods sold 150,000
The profit margin would be
0.75
0.25
0.05
0.95
Financial information is presented below:
Operating expenses $ 45,000
Sales returns and allowances 3,000
Sales discounts 7,000
Sales revenue 160,000
Cost of goods sold 96,000
The amount of net sales on the income statement would be
$153,000.
$150,000.
c. $160,000.
$157,000.
Adams Company is a retailer and uses a perpetual inventory system. Which statement is correct?
Freight paid to get merchandise to Adams Company’s store is debited to Freight Expense.
A return of merchandise by one of Adams Company’s customers is credited to Inventory.
Returns of merchandise by Adams Company to a manufacturer are credited to Inventory.
Discounts taken by Adams Company’s customers are credited to Inventory.
When using a perpetual inventory system, why are discounts credited to Inventory?
The discounts are debited to discount expense and thus the credit has to be made to merchandise inventory.
The discounts reduce the cost of the inventory
The discounts are a reduction of business expenses.
None of these answers choices are correct.
A credit sale of $3,800 is made on April 25, terms 2/10, net/30, on which a return of $200 is granted on April 28. What amount will be received as payment in full if collected on May 4?
$3,528
$3,724
$3,880
$3,600
