2361 Exam 2 Practice Ch 5, 6 Inventories _1_

2361 Exam 2 Practice Ch 5, 6 Inventories _1_ - The...

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1. The largest expense category on the income statement of most merchandising companies is: a. cost of goods sold b. administrative expenses c. other expenses d. selling expenses 2. A perpetual inventory system offers all the following advantages except: a. inventory balances are always current b. it is less expensive than a periodic system c. it enhances internal control d. it helps salespeople determine whether there is a sufficient supply of inventory on hand to fill customer orders 3. If a company uses a perpetual inventory system, which of the following entries are required to record the purchase of merchandise on credit? a. Sales Accounts Receivable b. Purchases Accounts Payable c. Inventory Accounts Receivable d. Inventory Accounts Payable 4. If a company uses a perpetual inventory system, which of the following entries are required to record the cost of merchandise sold on credit? a. Sales Accounts Receivable b. Accounts Receivable Sales c. Cost of Goods Sold Inventory d. Inventory Cost of Goods Sold e. 5. In a periodic inventory system the quantity of ending inventory is determined by: a. looking at the balance in the inventory account b. subtracting units sold from units purchased c. a physical inventory count d. subtracting units purchased from units sold
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Page 2 6. Given the following data, what is the cost of goods sold? Sales revenue $950,000 Beginning inventory 120,000 Ending inventory 250,000 Purchases 800,000 a. $930,000 b. $670,000 c. $680,000 d. $550,000 7. Given the following data, what is the cost of beginning inventory? Sales revenue
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This note was uploaded on 10/14/2011 for the course ACC 101 taught by Professor Severance during the Spring '08 term at Texas State.

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2361 Exam 2 Practice Ch 5, 6 Inventories _1_ - The...

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