Principles of Accounting I Test 3 Review - Ch 6 Questions 1 The steps of the operating cycle for a retailer usually take place in which order A

Principles of Accounting I Test 3 Review - Ch 6 Questions 1...

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Ch. 6 Questions 1.) 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 the B) Sale of merchandise on account → Purchases of merchandise → Collection of the C) Collection of the receivables → Purchases of merchandise → Sale of merchandise on D) Purchases of merchandise → Collection of the receivables → Sale of merchandise on receivables receivables Account Account 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 the following? 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.
5.) A company maintains a separate ledger containing the account of each of its customers. The Accounts Receivable account of the company is referred to as which of the following? A) Combination account B) Control account C) Multiple accounts D) 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 the recording of sales? 8.) When inventory is sold under a perpetual inventory system, which of the following should be recorded?
followed by a debit to Cost of Goods Sold and a credit to Inventory at the cost of the inventory sold. a debit to Cost of Goods Sold and a credit to Inventory at the selling price of the inventory sold. a debit to Cost of Goods Sold and a credit to Inventory at the cost of the inventory sold. followed by a debit to Cost of Goods Sold and a credit to Inventory at the selling price of the inventory sold.

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