Chapter 5 Practice Set
1. A merchandise company:
A. Earns net income by buying and selling merchandise
B. Can buy products from manufacturers and sell to retailers
C. Can buy products from manufacturers and sell them to consumers
D. Can be a wholesaler or
Chapter 4 Practice Set
1. A work sheet can be thought of as a(n)
A. Permanent accounting record
B. Optional device used by accountants
C. Part of the general ledger
D. Part of the journal
2. When constructing a worksheet, accounts are often needed that ar
Available March 2 at 6:00 p.m.
Due no later than March 11 at 11 p.m.
There are 40 questions worth a total of 100 points. Each question is worth 2.5 points.
Please use the posted answer sheet for your answers. Your answer sheet i
Chapter 5 Practice Set #2
1. What is the term applied to the excess of net revenue from sales over the cost of
A. Gross profit
B. Income from operations
C. Net income
D. Gross sales
2. The term inventory indicates
A. Merchandise held for
Chapter 3 Practice Set
1. Which of the following are in accordance with generally accepted accounting principles?
A. Accrual basis accounting
B. Cash basis accounting
C. Both accrual basis and cash basis accounting
D. Neither accrual basis nor cash basis
Chapter 1 Practice Set
1. Which of the following would not be considered an external user of accounting data for
the GHI Company?
A) Internal Revenue Service Agent.
2. Which of the following would not be consider
Practice Set for Chapter 2
1. Which of the following statements is true?
A) Debits increase assets and increase liabilities.
Credits decrease assets and decrease liabilities.
Credits decrease assets and increase liabilities.
D) Debits decrease liabi