Accounting Department Question 1:...................................................................... section of the exam consists of nine multiple choice questions. Carefully read each and examine all the provided options. Select the answer you believe is most accurate or appropriate. . (9 Points) 1. Gross profit will result if: A. operating expenses are less than net income. B. sales revenues are greater than operating expenses. C. sales revenues are greater than cost of goods sold. D. operating expenses are greater than cost of goods sold. 2. Under a perpetual inventory system, when goods are purchased for resale by a company: A. purchases on account are debited to Inventory. B. purchases on account are debited to Purchases. C. purchase returns are debited to Purchase Returns and Allowances. D. freight costs are debited to Freight-Out. 3. The sales accounts that normally have a debit balance are: A. Sales Discounts. B. Sales Returns and Allowances. C. Both (A) and (B) D. Neither (A) nor (B) 4. Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system? A. Purchases. B. Cost of Goods Sold. C. Freight-In. D. Purchase Discounts 5. To record the sale of goods for cash in a perpetual inventory system: A. only one journal entry is necessary to record cost of goods sold and reduction of inventory. B. only one journal entry is necessary to record the receipt of cash and the sales revenue. C. two journal entries are necessary; one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and reduction of inventory. D. two journal entries are necessary; one to record the receipt of cash and reduction of inventory, and one to record the cost of goods sold and sales revenue 6. The steps in the accounting cycle for a merchandising company are the same as those in a service company except: A. an additional adjusting journal entry for inventory may be needed in a merchandising company. B. closing journal entries are not required for a merchandising company. C. a post-closing trial balance is not required for a merchandising company. D. an income statement is required for a merchandising company. 7. In determining cost of goods sold in a periodic system: A. purchase discounts are deducted from net purchases. B. freight-out is added to net purchases. C. purchase returns and allowances are deducted from net purchases. D. freight-in is added to net purchases.

Question

Вопрос

Accounting Department Question 1:...................................................................... section of the exam consists of nine multiple choice questions. Carefully read each and examine all the provided options. Select the answer you believe is most accurate or appropriate. . (9 Points) 1. Gross profit will result if: A. operating expenses are less than net income. B. sales revenues are greater than operating expenses. C. sales revenues are greater than cost of goods sold. D. operating expenses are greater than cost of goods sold. 2. Under a perpetual inventory system, when goods are purchased for resale by a company: A. purchases on account are debited to Inventory. B. purchases on account are debited to Purchases. C. purchase returns are debited to Purchase Returns and Allowances. D. freight costs are debited to Freight-Out. 3. The sales accounts that normally have a debit balance are: A. Sales Discounts. B. Sales Returns and Allowances. C. Both (A) and (B) D. Neither (A) nor (B) 4. Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system? A. Purchases. B. Cost of Goods Sold. C. Freight-In. D. Purchase Discounts 5. To record the sale of goods for cash in a perpetual inventory system: A. only one journal entry is necessary to record cost of goods sold and reduction of inventory. B. only one journal entry is necessary to record the receipt of cash and the sales revenue. C. two journal entries are necessary; one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and reduction of inventory. D. two journal entries are necessary; one to record the receipt of cash and reduction of inventory, and one to record the cost of goods sold and sales revenue 6. The steps in the accounting cycle for a merchandising company are the same as those in a service company except: A. an additional adjusting journal entry for inventory may be needed in a merchandising company. B. closing journal entries are not required for a merchandising company. C. a post-closing trial balance is not required for a merchandising company. D. an income statement is required for a merchandising company. 7. In determining cost of goods sold in a periodic system: A. purchase discounts are deducted from net purchases. B. freight-out is added to net purchases. C. purchase returns and allowances are deducted from net purchases. D. freight-in is added to net purchases.

Answer 1

1. C. Gross profit will result if sales revenues are greater than cost of. 2. A. Under a perpetual inventory system, when goods are purchased for resale by a company, purchases on account are debited to Inventory. 3. C. The sales accounts that normally have a debit balance are Sales Discounts and Sales Returns and Allowances. 4. B. Cost of Goods Sold will normally appear in the ledger of a merchandising company that uses a perpetual inventory system. 5. C. To record the sale of goods for cash in a perpetual inventory system, two journal entries are necessary: one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and reduction of inventory. 6. A. The steps in the accounting cycle for a merchandising company are the same as those in a service company except an additional adjusting journal entry for inventory may be needed in a merchandising company. 7. D. In determining cost of goods sold in a periodic system, freight-in is added to net purchases.

Вопрос

Решения

Отвечать