chapter5a - Chapter 5 1 Gross profit will result if A...

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Chapter 5 1. Gross profit will result if: A. operating expenses are less than net income. B. sales revenues are greater than operating expenses. C. sales revenues are greater than cost of goods sold. D. operating expenses are greater than cost of goods sold. 2. Under a perpetual inventory system, when goods are purchased for resale by a company: A. purchases on account are debited to Merchandise Inventory. B. purchases on account are debited to Purchases. C. purchase returns are debited to Purchase Returns and Allowances. D. freight costs are debited to Freight-out. 3. The sales accounts that normally have a debit balance are: A. Sales Discounts. B. Sales Returns and Allowances. C. both (a) and (b). D. neither (a) nor (b). 4. A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as payment in full on June 23 is: A. $700. B. $686. C.
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This note was uploaded on 01/27/2010 for the course MGT 011A taught by Professor Hancock,john during the Spring '07 term at UC Davis.

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chapter5a - Chapter 5 1 Gross profit will result if A...

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