ACCT 2121 Practice Exam 2 MC

ACCT 2121 Practice Exam 2 MC - These questions come...

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These questions come primarily from previous exams. Success on this exam does NOT ensure success on the actual exam! ACCOUNTING 2121 PRACTICE EXAM NO. 2 1. Sales revenue less cost of goods sold is called a. gross profit. b. net profit. c. net income. d. marginal income. 2. Wilson Company reported the following: Sales, $71,200; Gross Profit, $39,000; Net Income, $10,800. What was Cost of Goods Sold? a. $110,200 b. $49,800 c. $32,200 d. $28,200 3. If a company uses LIFO for tax purposes, then for financial reporting purposes a. they must also use LIFO b. they may use either FIFO or LIFO c. they cannot use LIFO d. they must use average cost 4. If goods in transit are shipped FOB destination a. the seller has legal title to the goods until they are delivered. b. the buyer has legal title to the goods until they are delivered. c. the transportation company has legal title to the goods while the goods are in transit. d. no one has legal title to the goods until they are delivered. 5. Beginning inventory plus the cost of goods purchased equals the a. cost of goods sold. b. cost of goods available for sale. c. net purchases. d. gross prodit
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QUESTIONS 6-8 ARE BASED ON THE FOLLOWING INFORMATION:  ended  June 30, 2003: Sales revenues. ........................................................................... $180,000 Sales discounts. ................................................................................ 5,000 Sales returns and allowances. ....................................................... 10,000 Purchases. ................................................................................... $100,000 Purchases discounts. ....................................................................... 6,000 Purchases returns and allowances. .............................................. $8,000 Freight in. ......................................................................................... 2,000 Merchandise Inventory 6/1/98 . ................................................... 20,000 Merchandise Inventory 6/30/98 . ................................................. 30,000     6. The company’s net sales are a. $180,000 b. $175,000 c. $165,000 d.  $  80,000     7. The company’s cost of goods purchased  is a. $108,000 b. $  88,000 c. $  86,000 d. $  84,000  8. The company’s cost of goods sold is a. $100,000 b. $  88,000 c. $  78,000 d. $  70,000 QUESTIONS  9 THROUGH  11 ARE BASED ON THE FOLLOWING INFORMATION: Lotus  Corporation  placed  an  order  for  merchandise  from  Dolphin  Company  on  April  29, 2003. The  merchandise was shipped  via UPS on April 30, 2003. The sales price of the merchandise  was $10,000. The  credit   terms   were   2/10,   n/30.   The   shipping   terms   were   FOB   shipping   point.     Lotus   received   the  merchandise on May 2, 2003.
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This note was uploaded on 04/11/2010 for the course BUSINESS 2301 taught by Professor Dr.randell during the Spring '10 term at AIB College of Business.

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ACCT 2121 Practice Exam 2 MC - These questions come...

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