quizz 5.1 - 1. Which sales accounts normally have a debit...

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1. Which sales accounts normally have a debit balance? A) Sales discounts B) Sales returns and allowances. C) both (a) and (b). D) Neither (a) and (b). Points Earned: 5.0/5.0 Correct Answer(s): C 2. Turner Corporation returned $110 of goods originally purchased on credit form Morgan Industries. Using the periodic Inventory approach, Turner would record this transaction as: A) B) C) D) Points Earned: 0.0/5.0 Correct Answer(s): D 3. Haverty Industries increased its gross profit rate from 18.4% in 2009 to 23.7% in 2010. Which of the following would be a possible explanation for this change? A) Haverty's global sourcing efforts at the beginning of 2010 resulted in a lower cost of merchandise sold. B) Haverty's new profit lines with lower margins in 2010 became a larger component of their sales.
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C) Haverty increased its product markdowns in 2010. D) Haverty's average margin between the selling price and the inventory cost decreased over this two-year period. Points Earned: 5.0/5.0 Correct Answer(s): A 4. If a purchaser using a perpetual inventory system pays the transportation costs, then the A) Merchandise Inventory account is increased. B) Merchandise Inventory account is not affected. C) Freight-out account is increased.
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This note was uploaded on 06/21/2011 for the course GOVT 1301 taught by Professor Capentor during the Spring '11 term at Cy-Fair College.

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quizz 5.1 - 1. Which sales accounts normally have a debit...

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