Question 1

A company has sales of $695,000 and cost of goods sold of $278,000.Its gross profit equals:

Accepted Answer

A)  $(417,000) .
B)  $695,000.
C)  $278,000.
D)  $417,000.
E)  $973,000.F) C) and D)
G) B) and D)

Question 2

Which of the following accounts would be closed at the end of the accounting period with a debit?

Accepted Answer

A)  Sales Discounts.
B)  Sales Returns and Allowances.
C)  Cost of Goods Sold.
D)  Operating Expenses.
E)  Sales.F) All of the above
G) B) and E)

Question 3

Johnnycake Restaurant uses a periodic inventory system.Prepare general journal entries to record the following transactions for Johnnycake:

Accepted Answer

The answer of Johnnycake Restaurant uses a periodic inventory system.Prepare...

Question 4

A company's current assets are $17,980,its quick assets are $11,420 and its current liabilities are $12,190.Its quick ratio equals:

Accepted Answer

A)  0.94.
B)  1.07.
C)  1.48.
D)  1.57.
E)  2.40.F) B) and E)
G) A) and E)

Question 5

Fill in the blanks (a)through (g)for the Corman Company for each of the income statements for 2014 and 2015.

Accepted Answer

The answer of Fill in the blanks (a)through (g)for the...

Question 6

Non-operating activities that include interest,dividend,and rent revenues,and gains from asset disposals are called _____________________________.

Accepted Answer

other reve...

Question 7

The amount recorded for merchandise inventory includes all of the following except:

Accepted Answer

A)  Purchase discounts.
B)  Returns and allowances.
C)  Freight costs paid by the buyer.
D)  Freight costs paid by the seller.
E)  Trade discounts.F) A) and E)
G) B) and E)

Question 8

A company had net sales of $752,000 and cost of goods sold of $543,000.Its net income was $17,530.The company's gross margin ratio equals:

Accepted Answer

A)  18.9%
B)  24.5%
C)  27.8%
D)  34.7%
E)  35.2%F) A) and E)
G) A) and D)

Question 9

A buyer failed to take advantage of the vendor's credit terms of 2/15,n/45,but instead paid the invoice in full at the end of 60 days.By not taking advantage of the cash discount,the equivalent annual interest lost on the amount of the purchase is:

Accepted Answer

A)  12.2%
B)  16.2%
C)  18.9%
D)  24.3%
E)  24.5%F) B) and D)
G) None of the above

Question 10

A company's net sales are $775,420,its costs of goods sold are $413,890,and its net income is $117,220.Its gross margin ratio equals:

Accepted Answer

A)  46.6%.
B)  53.4%.
C)  28.3%.
D)  31.5%.
E)  40.5%.F) A) and E)
G) B) and E)

Question 11

The credit terms 2/10,n/30 are interpreted as:

Accepted Answer

A)  2% cash discount if the amount is paid within 10 days,or the balance due in 30 days.
B)  10% cash discount if the amount is paid within 2 days,or the balance due in 30 days.
C)  30% discount if paid within 2 days.
D)  30% discount if paid within 10 days.
E)  2% discount if paid within 30 days.F) B) and E)
G) All of the above

Exam 5: Accounting for Merchandising Operations

Which of the following accounts would be closed at the end of the accounting period with a debit?

Correct Answer
verified

The credit terms 2/10,n/30 are interpreted as:

Correct Answer
verified

A company had net sales of $752,000 and cost of goods sold of $543,000.Its net income was $17,530.The company's gross margin ratio equals:

Correct Answer
verified

A company's net sales are $775,420,its costs of goods sold are $413,890,and its net income is $117,220.Its gross margin ratio equals:

Correct Answer
verified

A company's current assets are $17,980,its quick assets are $11,420 and its current liabilities are $12,190.Its quick ratio equals:

Correct Answer
verified

A company has sales of $695,000 and cost of goods sold of $278,000.Its gross profit equals:

Correct Answer
verified

The amount recorded for merchandise inventory includes all of the following except:

Correct Answer
verified

Non-operating activities that include interest,dividend,and rent revenues,and gains from asset disposals are called _____________________________.

Correct Answer
verified
other reve...
View Answer

Fill in the blanks (a)through (g)for the Corman Company for each of the income statements for 2014 and 2015.

Correct Answer
verified

A buyer failed to take advantage of the vendor's credit terms of 2/15,n/45,but instead paid the invoice in full at the end of 60 days.By not taking advantage of the cash discount,the equivalent annual interest lost on the amount of the purchase is:

Correct Answer
verified

Johnnycake Restaurant uses a periodic inventory system.Prepare general journal entries to record the following transactions for Johnnycake:

Correct Answer
verified

Exam 5: Accounting for Merchandising Operations

Which of the following accounts would be closed at the end of the accounting period with a debit?

Correct AnswerverifiedShow Answer

The credit terms 2/10,n/30 are interpreted as:

Correct AnswerverifiedShow Answer

A company had net sales of $752,000 and cost of goods sold of $543,000.Its net income was $17,530.The company's gross margin ratio equals:

Correct AnswerverifiedShow Answer

A company's net sales are $775,420,its costs of goods sold are $413,890,and its net income is $117,220.Its gross margin ratio equals:

Correct AnswerverifiedShow Answer

A company's current assets are $17,980,its quick assets are $11,420 and its current liabilities are $12,190.Its quick ratio equals:

Correct AnswerverifiedShow Answer

A company has sales of $695,000 and cost of goods sold of $278,000.Its gross profit equals:

Correct AnswerverifiedShow Answer

The amount recorded for merchandise inventory includes all of the following except:

Correct AnswerverifiedShow Answer

Non-operating activities that include interest,dividend,and rent revenues,and gains from asset disposals are called _____________________________.

Correct Answerverifiedother reve...View AnswerShow Answer

Fill in the blanks (a)through (g)for the Corman Company for each of the income statements for 2014 and 2015.

Correct AnswerverifiedShow Answer

A buyer failed to take advantage of the vendor's credit terms of 2/15,n/45,but instead paid the invoice in full at the end of 60 days.By not taking advantage of the cash discount,the equivalent annual interest lost on the amount of the purchase is:

Correct AnswerverifiedShow Answer

Johnnycake Restaurant uses a periodic inventory system.Prepare general journal entries to record the following transactions for Johnnycake:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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other reve...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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