Questions with solutions in bold

Questions with solutions in bold - 1. What is the term...

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What is the term applied to the excess of net revenue from sales over the cost of merchandise sold? a. gross profit b. income from operations c. net income d. gross sales 2. Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense? a. selling expense b. miscellaneous expense c. administrative expense d. other expense 3. When the three sections of a balance sheet are presented on a page in a downward sequence, it is called the: a. account form b. comparative form c. horizontal form d. report form 4. The primary difference between a periodic and perpetual inventory system is that a: a. periodic system determines the inventory on hand only at the end of the accounting period b. periodic system keeps a record showing the inventory on hand at all times c. periodic system provides an easy means to determine inventory shrinkage d. periodic system records the cost of the sale on the date the sale is made 5. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 6. Merchandise is ordered on November 12; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 15; the merchandise is received by the buyer on November 17; the entry is made in the buyer's accounts on November 18. The credit period begins with what date? a.
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This note was uploaded on 06/22/2009 for the course ACCOUNTING 1A taught by Professor Seyedin during the Fall '08 term at Foothill College.

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Questions with solutions in bold - 1. What is the term...

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