Principles of Accounting I Test 3 Review - Ch. 6 Questions...

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Ch. 6 Questions1.)The steps of the operating cycle for a retailer usually take place in which order?A) Purchases of merchandise → Sale of merchandise on account → Collection of thereceivablesB) Sale of merchandise on account → Purchases of merchandise → Collection of thereceivablesC) Collection of the receivables → Purchases of merchandise → Sale of merchandise onAccountD) Purchases of merchandise → Collection of the receivables → Sale of merchandise onAccount
2.)Merchandising activities are carried out by:
3.)Revenues from sales are $450,000, sales discounts are $12,000, cost of goods sold is$230,000, and operating expenses are $180,000. Income before taxes is which of thefollowing?
4.)Revenues from sales are $450,000, sales discounts are $12,000, cost of goods sold is$230,000, and operating expenses are $180,000. Calculate the gross profit.
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Chapter A / Exercise EX C-4
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
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B) $40,000C) $202,000D) $208,0005.)A company maintains a separate ledger containing the account of each of itscustomers. The Accounts Receivable account of the company is referred to as which ofthe following?A) Combination accountB) Control accountC) Multiple accountsD) Subsidiary account
6.) In a perpetual inventory system, as inventory is purchased, it is initially recorded as(1) _____________. When inventory is sold to customers, it is converted to (2)___________.
7.)When a company is using a perpetual inventory system, which entry follows therecording of sales?
8.)When inventory is sold under a perpetual inventory system, which of the followingshould be recorded?

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Financial and Managerial Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter A / Exercise EX C–4
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified

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