ch05_tb_so6 - CHAPTER 5 Test Bank Study Objective 6...

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CHAPTER 5 Test Bank: Study Objective 6 TRUE-FALSE STATEMENTS AND SOLUTIONS 51. The gross profit amount is generally considered to be more informative than the gross profit rate. 52. Gross profit rate is computed by dividing cost of goods sold by net sales. Answers to True-False Statements 1. T 9. T 17. T 25. F 33. F 41. T 49. F 2. F 10 F 18. T 26. T 34. T 42. T 50. T 3. F 11. F 19. F 27. F 35. T 43. F 51. F 4. T 12. F 20. F 28. T 36. T 44. F 52. F 5. F 13. T 21. T 29. F 37. F 45. T 6. T 14. T 22. T 30. T 38. F 46. T 7. T 15. T 23. F 31. T 39. F 47. T 8. F 16. T 24. F 32. T 40. F 48. T
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MULTIPLE CHOICE QUESTIONS AND SOLUTIONS 158. The gross profit rate would be a. .700. b. .187 c. .300. d. .487. 159. The profit margin ratio would be a. .360. b. .187. c. .300. d. .487. Use the following information to answer questions 160 through 162 Financial information is presented below: Operating Expenses $ 45,000 Sales Returns and Allowances 13,000 Sales Discount 6,000 Sales 150,000 Cost of Goods Sold 67,000 160. Gross Profit would be a. $77,000. b. $64,000. c. $70,000. d. $83,000. 161. The gross profit rate would be a. .535. b. .489. c. .511. d. .553. 162. The profit margin ratio would be a. .127. b. .132. c. .139. d. .145. Use the following information to answer questions 163 through 166 Financial information is presented below: Operating Expenses $ 45,000 Sales Returns and Allowances 13,000 Sales Discount 6,000 Sales 160,000
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77,000 163. The amount of net sales on the income statement would be a. $154,000. b. $141,000. c. $160,000. d. $166,000. 164. Gross Profit would be a. $77,000. b. $70,000. c. $64,000. d. $83,000. 165. The gross profit rate would be a. .454. b. .546. c. .500. d. .538. 166. The profit margin ratio would be a. .454. b. .119. c. .238. d. .135. Use the following information to answer questions 167 through 170 Financial information is presented below: Operating Expenses $ 35,000 Sales Returns and Allowances 12,000 Sales Discount 3,000 Sales 140,000 Cost of Goods Sold 67,000 167. The amount of net sales on the income statement would be a. $128,000. b. $125,000.
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ch05_tb_so6 - CHAPTER 5 Test Bank Study Objective 6...

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