acct exam 3 - ACC 2301 exam 3 answers, spring 2011 (Dr....

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ACC 2301 exam 3 answers, spring 2011 (Dr. Said) 1.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.The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a a. multiple-step statement b. revenue statement c. report-form statement d. single-step statement 3.Merchandise inventory is classified on the balance sheet as a a. Current Liability b. Current Asset c. Long-Term Asset d. Long-Term Liability 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 Use the following information to answer questions 5 - 8 Purchases $28,00 0 Purchases discounts $800 Merchandise inventory April 1 6,500 Merchandise inventory April 30 7,800 Sales returns and allowances 750 Sales 57,000 1,000 Transportation In 880 5. what is the amount of cost of merchandise sold? a. 25,780 b. 23,270 c. 31,220 d. 24,020 6. what is the amount of gross profit? a. 31,970 b. 30,470 c. 25,780 d. 56,250 7. what is the amount of net sales? a. 25,780 b. 57,000 c. 57,750 d. 56,250 8. What is the amount of merchandise available for sale? a. 33,580 b. 30,470 c. 25,780 1
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d. 34,500 9.Where are operating expenses found on the multi-step income statement? a. before gross profit b. after sales and before gross profit c. after net income before expenses d. after gross profit 10.Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 11.Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a a. credit to Sales Returns and Allowances b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. debit to Cost of Merchandise Sold 12.On January 15, 2011 Merchandise is sold for $15,000 subject to terms 1/10, n/30. Buyer paid cash $10,000 on January 15, 2011 and the remaining amount is due in 30 days. What is the amount of the cash discount allowable? a. $160 b. $150 c. $140 d. $100 13.The entry to record the return of merchandise from a customer would include a a. debit to Sales b. credit to Sales c. debit to Sales Returns and Allowances d. credit to Sales returns and Allowances 14.When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry a. debit Merchandise Inventory; credit Cash b. debit Cash; credit Merchandise Inventory
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acct exam 3 - ACC 2301 exam 3 answers, spring 2011 (Dr....

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