BUA 201 Exam 2 Study Guide.doc - Exam II Review Chapter 5 1.Which of the following activities is not a component of the operating cycle a Sale of

BUA 201 Exam 2 Study Guide.doc - Exam II Review Chapter 5...

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Exam II ReviewChapter 5:1.Which of the following activities is not a component of the operating cycle?a.Sale of merchandiseb.Payment of employees’ salariesc.Collection of cash from merchandise salesd.Purchase of merchandise2.Gross profit equals the difference between3.Two categories of expenses in merchandising companies are4.Which of the following expressions is incorrect?5.The primary difference between a periodic and perpetual inventory system is that aperiodic systema.keeps a record showing the inventory on hand at all time.b.provides better control over inventories.c.records the cost of the sale on the date the sale is made.d.determines the inventory on hand only at the end of the accounting period.6.A company using a perpetual inventory system that returns goods previously purchasedon credit would7.If a purchaser using a perpetual inventory system pays the transportation costs, then: 8.Freight costs incurred by a seller on merchandise sold to customers will cause an increase1
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9.In the credit terms of 1/10, n/30, the “1” represents thea.number of days in the discount period.b.full amount of the invoice.c.number of days when the entire amount is due.d.percent of the cash discount.
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