Question

Can I please get some quick accounting help?

1. Since merchandise inventory is normally sold within a year, how is it reported on the balance sheet? (Points: 2)
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


2. ABC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $16,000 in operating expenses, and $2,000 in other income. What is ABC Company's gross profit? (Points: 2)
a.$17,000
b.$3,000
c.$1,000
d. ($1,000)


3. Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense? (Points: 2)
a.Selling expense
b. Miscellaneous expense
c. Administrative expense
d. Other expense


4. Gross profit is equal to (Points: 2)
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.


5. Under a perpetual inventory system, (Points: 2)
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.


6. Sometimes a(n) __________ is offered to buyers as a means of encouraging them to pay before the end of the credit period. (Points: 2)
a. accounts receivable
b. credit card
c. sales discount
d. cash sale


7. In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is (Points: 2)
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.


8. If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are (Points: 2)
a. n/30.
b. FOB shipping point.
c. FOB destination.
d. consigned.


9. If a $10,000 sale is made on January 1, with terms of 2/10, n/30, how much would the discount be if payment is made on January 9? (Points: 2)
a. $10,000
b. $200
c. $1,000
d. $0


10. Apple Co. sells merchandise on credit to Zea Co. in the amount of $8,000. The invoice is dated on September 15 with terms of 1/15, net 45. What is the amount of the discount, and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? (Points: 2)
a. $160, September 30
b. $160, September 25
c. $80, September 30
d. $80, September 25

Thank you

3 years ago - 1 answers

Best Answer

Chosen by Asker

1. Since merchandise inventory is normally sold within a year, how is it reported on the balance sheet? (Points: 2)
d. As a current asset


2. ABC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $16,000 in operating expenses, and $2,000 in other income. What is ABC Company's gross profit? (Points: 2)
Net Sales - Cost of Goods Sold = Gross Profit
a.$17,000

3. Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense? (Points: 2)
c. Administrative expense

4. Gross profit is equal to (Points: 2)
d.sales less (sales discounts and sales returns and allowances) less cost of merchandise sold.

5. Under a perpetual inventory system, (Points: 2)
a.accounting records continuously disclose the amount of inventory.

6. Sometimes a(n) __________ is offered to buyers as a means of encouraging them to pay before the end of the credit period. (Points: 2)
c. sales discount

7. In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is (Points: 2)
b.increase Cost of Merchandise Sold; decrease Merchandise Inventory.

8. If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are (Points: 2)
b. FOB shipping point.

9. If a $10,000 sale is made on January 1, with terms of 2/10, n/30, how much would the discount be if payment is made on January 9? (Points: 2)
10,000 x 2% = 200
b. $200

10. Apple Co. sells merchandise on credit to Zea Co. in the amount of $8,000. The invoice is dated on September 15 with terms of 1/15, net 45. What is the amount of the discount, and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? (Points: 2)
1% x 8,000 = 80
15 + 15 = 30
c. $80, September 30

3 years ago