Acct 2110 Chapter 4 MC
a.The revenue activities of a service business involve providing services to customers.
b.The revenue activities of a merchandising business involve the building of a product.
c.The revenue activities of a service business involve the building of a product.
d.The revenue activities of a merchandising business involve providing services to customers.
a.H&R Block
b.Becker Law Office
c.Little Tykes Daycare
d.Kohl’s
a.The cost of merchandise purchased
b.Fees earned
c.Accounts receivable
d.Net sales
a.As a revenue
b.As the cost of merchandise sold
c.It does not appear on the Balance Sheet
d.As a current asset
a.Sales.
b.Net Sales.
c.Gross Sales.
d.Gross Profit.
a.Only cash sales are included in the Sales account.
b.Sales is the total amount charged customers, including cash sales and sales on account.
c.Both sales discounts and sales returns and allowances are added to Sales to arrive at Net Sales.
d.Sales is the revenue account typically used in service businesses.
a.sales.
b.net sales.
c.gross sales.
d.gross profit.
a.Sales returns and allowances
b.Sales discounts
c.Both sales discounts and sales returns and allowances
d.Neither sales discounts nor sales returns and allowances
a.$10,000
b.$25,000
c.$5,000
d.$30,000
Purchases $50,000
Purchase returns $ 4,000
Purchase discounts $ 1,000
Transportation in $ 2,000
What is the total cost of merchandise purchased for Dig, Inc.?
a.$50,000
b.$47,000
c.$52,000
d.$48,000
a.All expenses
b.Cost of merchandise sold
c.Operating expenses
d.Sales expenses
a.Salespersons’ salaries
b.Office salaries
c.Depreciation of store equipment
d.Advertising
a.Accounts Payable
b.Sales Returns and Allowances
c.Accounts Receivable
d.Interest Revenue
a.Salespersons’ salaries
b.Office salaries
c.Depreciation of office equipment
d.Office supplies used
a.$17,000
b.$3,000
c.$1,000
d.($1,000)
a.cost of merchandise sold.
b.purchases.
c.purchases returns and allowances.
d.net purchases.
a.Gross profit
b.Income from operations
c.Net income
d.Gross sales
a.selling expenses.
b.general expenses.
c.other expenses.
d.administrative expenses.
a.Selling expense
b.Miscellaneous expense
c.Administrative expense
d.Other expense
a.multiple-step statement.
b.revenue statement.
c.Report-form statement.
d.Single-step statement.
a.gross profit but not income from operations.
b.neither gross profit nor income from operations.
c.both gross profit and income from operations.
d.income from operations but not gross profit.
a.Operating expenses
b.Other expenses
c.Income taxes
d.All of these
a.cost of goods sold.
b.old stock.
c.merchandise inventory.
d.net purchases.
a.Purchase discounts
b.Gross profit
c.Operating income
d.Income before taxes
a.Sales returns
b.Merchandise inventory
c.Accounts receivable
d.Cost of merchandise sold
a.sales plus (sales discounts and sales returns and allowances) plus cost of merchandise sold.
b.sales plus sales returns and allowances less sales discounts less cost of merchandise sold.
c.sales plus sales discounts less sales returns and allowances less cost of merchandise sold.
d.sales less (sales discounts and sales returns and allowances) less cost of merchandise sold.
Deana, Inc. purchased merchandise for $500,000, received credit for purchase returns of $25,000, took purchase discounts of $10,000, and paid transportation in of $20,000.
What is the total cost of merchandise purchased?
a.$520,000
b.$485,000
c.$445,000
d.$480,000
If Deana, Inc. had $20,000 in beginning inventory, and sold goods costing $300,000, what is the ending inventory balance?
a.$165,000
b.$240,000
c.$200,000
d.$185,000
a.Cost of goods sold
b.Purchase returns
c.Purchases discounts
d.Purchases
a.Purchases
b.Transportation In
c.Sales Returns and Allowances
d.Merchandise Inventory
a.gross profit but not net income.
b.neither gross profit nor net income.
c.gross profit but not cost of merchandise sold.
d.gross profit, cost of merchandise sold, income from operations and net income.
a.accounting records continuously disclose the amount of inventory.
b.increases in inventory resulting from purchases are debited to Purchases.
c.there is no need for a year-end physical count.
d.the purchase returns and allowances account is credited when goods are returned to vendors.
a.Before gross profit
b.After sales and before gross profit
c.After net income and before expenses
d.After gross profit
a.$22,500
b.$22,000
c.$5,450
d.$22,050
a.other income.
b.operating expenses.
c.cost of goods sold.
d.other expenses.
a.It is too complex.
b.It has too many subsections.
c.Gross profit and income from operations are not available for analysis.
d.Income taxes are given too much weight.
a.Balance sheet
b.Statement of retained earnings
c.Statement of cash flows
d.Income statement
a.$500,000
b.$550,000
c.$490,000
d.$510,000
a.purchase order.
b.invoice.
c.bill of lading.
d.account receivable.
a.November 12
b.November 15
c.November 17
d.November 18
a.November 12
b.November 15
c.November 17
d.November 22
a.$3,861
b.$4,158
c.$4,161
d.$4,200
a.accounts receivable
b.credit card
c.sales discount
d.cash sale
a.credit terms.
b.net cash.
c.cash on demand.
d.gross cash.
a.$0
b.$200
c.$1,000
d.$400
a.number of days in the discount period.
b.full amount of the invoice.
c.number of days when the entire amount is due.
d.percent of the cash discount.
a.decrease in Bank Credit Card Sales, increase in Credit Card Expense, and increase in Sales.
b.increase in Cash and increase in Sales.
c.increase in Cash, decrease in Credit Card Expense, and increase in Sales.
d.decrease in Sales, increase in Credit Card Expense, and decrease in Cash.
a.increase Cost of Merchandise Sold; increase Sales.
b.increase Cost of Merchandise Sold; decrease Merchandise Inventory.
c.increase Merchandise Inventory; decrease Cost of Merchandise Sold.
d.increase Accounts Receivable; decrease Merchandise Inventory.
a.Cash, accounts receivable, cost of goods sold, and sales returns
b.Sales returns, accounts receivable, merchandise inventory, and cost of goods sold
c.Sales returns, accounts receivable, purchases, and cost of goods sold
d.Sales returns, accounts receivable, purchases, and merchandise inventory
a.Increases Sales Returns and Allowances and decreases Accounts Receivable
b.Decreases Cost of Merchandise Sold and increases Merchandise Inventory
c.Increases Purchase Returns and Allowances and decreases Merchandise Inventory
d.All of these occur.
a.sales invoice.
b.purchase invoice.
c.credit memorandum.
d.debit memorandum
a.$160
b.$150
c.$140
d.$100
a.$180, September 30
b.$180, September 25
c.$90, September 30
d.$90, September 25
1.$5,000 of merchandise inventory was ordered on April 2, 2010.
2.$2,000 of this merchandise was received on April 5, 2010.
3.On April 6, 2010, an invoice dated April 4, 2010, with terms of 2/10, net 30 for $2,150 which included a $150 prepaid freight cost, was received.
4.On April 10, 2010, $500 of the merchandise was returned to the seller.
a.$100
b.$30
c.$43
d.$33
a.number of days in the discount period.
b.full amount of the invoice.
c.number of days when the entire amount is due.
d.percent of the cash discount.
a. Increases Cash; decreases Merchandise Inventory.
b.increases Merchandise Inventory; decreases Cash.
c.increases Merchandise Inventory; decreases Cash Discounts.
d.Increases Merchandise Inventory; decreases Purchases.
a.Supplies.
b.Cost of Goods Sold.
c.Merchandise Inventory.
d.Sales.
a.increase in Sales.
b.increase in Merchandise Inventory.
c.decrease in Merchandise Inventory.
d.decrease in Sales.
a.increase in Sales.
b.increase in Merchandise Inventory.
c.decrease in Merchandise Inventory.
d.decrease in Sales.
a.only the list price.
b.only the sales tax.
c.the list price plus the sales tax.
d.the list price less the sales tax.
a.$4,656
b.$4,400
c.$4,356
d.$4,950
a.$5,880
b.$5,292
c.$5,586
d.$5,592
a.$215
b.$175
c.$135
d.$140
a.FOB shipping point.
b.FOB destination.
c.FOB n/30.
d.FOB buyer.
a.FOB shipping point.
b.FOB destination.
c.FOB n/30.
d.FOB seller.
a.n/30.
b.FOB shipping point.
c.FOB destination.
d.consigned.
a.consigned.
b.n/30.
c.FOB shipping point.
d.FOB destination.
What is the net cost of the merchandise?
a.$6,125
b.$6,005
c.$5,880
d.$5,755
a.FOB destination
b.Transportation out
c.FOB shipping point
d.Transportation in
a.merchandise is returned by a buyer.
b.merchandise purchased from a seller is incomplete or short.
c.merchandise is returned to a seller.
d.there is a difference between a physical count of inventory and inventory records.
a.the cash flows from operating activities section.
b.The cash flows from financing activities section.
c.the cash flows from investing activities section.
d.a separate schedule.
a.The purchase of a long-term investment in the common stock of another company
b.The payment of cash to retire a long-term note
c.The proceeds from the sale of a building
d.The issuance of a long-term note to acquire land
a.subtracted from
b.added to
c.not used when calculating
d.cannot tell from the information given
a.Decrease in merchandise inventory
b.Payment on a note payable
c.Decrease in unearned rent
d.Depreciation expense
a.$48,000
b.$53,000
c.$35,000
d.$43,000
a.subtracted from
b.added to
c.not used in calculating
d.cannot tell from the information given
a.Operating activities
b.Investing activities
c.Financing activities
d.None of these
a.Decreases operating activities by $60,000
b.Decreases equipment by $60,000
c.Decreases the investing activities section by $60,000
d.This transaction would not affect the statement of cash flows.
a.collecting cash on loans made.
b.obtaining cash from creditors.
c.obtaining capital from owners.
d.repaying money previously borrowed.
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