Week 2 Ch 5 Self Assessment

Week 2 Ch 5 Self Assessment - 1. The operating cycle of a...

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1. The operating cycle of a merchandising company is ordinarily shorter than that of a service company. True False Score: 0 of 1 2. Discount terms of 2/10, n/30 mean that a 10% cash discount is available if payment is made within 30 days. True False Score: 0 of 1
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3. Sales Returns and Allowances is a contrarevenue account. True False Score: 0 of 1 4. Gross profit is the difference between net sales and cost of goods sold. True False Score: 0 of 1
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5. If the profit margin ratio is 5% and total expenses are $1,330,000, the net sales are $1,400,000. True False Score: 0 of 1 6. Sales Discounts is a contra asset account. True False Score: 0 of 1
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7. If a company's Net Cash Provided by Operating Activities is $4,250,000 and its Net Income is $3,465,000, then its Quality of Earnings Ratio is 1.2. True False Score: 0 of 1 8. Cost of goods sold is determined at the end of an accounting period under the: Periodic inventory system. Double entry inventory system. Perpetual inventory system. Single entry inventory system.
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Score: 0 of 1 9. A company with merchandise that has a high unit value would probably use a: Perpetual inventory system. Single entry inventory system. Double entry inventory system. Periodic inventory system. Score: 0 of 1 10. Beginning inventory is $12,000; purchases are $34,000; sales are $60,000; and cost of goods sold is $31,000. Ending inventory is:
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$14,000 $31,000 $46,000 Score: 0 of 1 11. When credit terms of 1/10, n/30 are offered, the discount period is:
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This note was uploaded on 06/08/2011 for the course COMPUTER CGS2100 taught by Professor Sanders during the Spring '09 term at Florida State College.

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Week 2 Ch 5 Self Assessment - 1. The operating cycle of a...

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