UNIT V TEST.docx - Question 1 5 out of 5 points What does"2/10 mean with respect to"credit terms of 2/10 n/30 Selected Answer Correct Answer A discount

UNIT V TEST.docx - Question 1 5 out of 5 points What...

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Question 1 5 out of 5 points What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? Selected Answer: A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Correct Answer: A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Question 2 5 out of 5 points Which of the following is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement? Selected Answer: Cost of goods sold Correct Answer: Cost of goods sold Question 3 5 out of 5 points The term "freight out" refers to __________. Selected Answer: transportation costs on sales Correct Answer: transportation costs on sales Question 4 5 out of 5 points Which of the following is not recorded in a modern perpetual inventory system? Selected Answer: Customer account numbers and balances owed from the sale of merchandise inventory Correct Answer: Customer account numbers and balances owed from the sale of merchandise inventory Question 5 5 out of 5 points A company that uses the perpetual inventory system purchases inventory for
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$61,000 on account, with terms of 3/10, n/30. Which of the following is the journal entry to record the payment made within 10 days? Selected Answer: A debit to Accounts Payable for $61,000, a credit to Merchandise Inventory for $1,830, and a credit to Cash for $59,170 Correct Answer: A debit to Accounts Payable for $61,000, a credit to Merchandise Inventory for $1,830, and a credit to Cash for $59,170 Question 6 5 out of 5 points Merchandise inventory accounting systems can be broadly categorized into two types. They are __________.
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