Accounting For Merchandising quiz

Financial Accounting Quiz

On Aug 20, 2024

/10

Accounting For Merchandising

10 questions in 10 minutes

Pass Score 70%

1 / 10

Gross profit will result if:

operating expenses are less than net income

sales revenues are greater than operating expenses

operating expenses are greater than cost of goods sold

sales revenues are greater than cost of goods sold

2 / 10

Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system ?

Cost of Goods Sold

Freight-In

Purchases

Purchase Discounts

3 / 10

In a worksheet using a perpetual inventory system, Inventory is shown in the following columns :

income statement debit and balance sheet debit

income statement credit and balance sheet debit

income statement credit and adjusted trial balance debit

adjusted trial balance debit and balance sheet debit

4 / 10

The multiple step income statement for a merchandising company shows each of the following features except :

cost of goods sold

gross proft

a sales revenue section

an investing activities section

5 / 10

The steps in the accounting cycle for a merchandising company are the same as those in a service company except :

a multiple-step income statement is required for a merchandising company

closing journal entries are not required for a merchandising company

an additional adjusting journal entry for inventory may be needed in a merchandising company

a post-closing trial balance is not required for a merchandising company

6 / 10

To record the sale of goods for cash in a perpetual inventory system :

only one journal entry is necessary to record the receipt of cash and the sales revenue

two journal entries are necessary: one to record the receipt of cash and reduction of inventory, and one to record the cost of goods sold and sales revenue

only one journal entry is necessary to record cost of goods sold and reduction of inventory

two journal entries are necessary: one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and reduction of inventory

7 / 10

The sales accounts that normally have a debit balance are :

Neither (Sales Discounts) nor (Sales Returns and Allowances)

(Sales Discounts) and (Sales Returns and Allowances)

Sales Discounts

Sales Returns and Allowances

8 / 10

When goods are purchased for resale by a company using a periodic inventory system :

purchases on account are debited to Purchases

purchase returns are debited to Purchase Returns and Allowances

purchases on account are debited to Inventory

freight costs are debited to Purchases

9 / 10

A single step income statement :

reports sales revenues and “Other revenues and gains” in the revenues section of the income statement

reports gross proft

reports operating income separately

does not report cost of goods sold

10 / 10

Which of the following appears on both a single-step and a multiple-step income statement ?

Income from operations

Cost of goods sold

Gross proft

Inventory

Your score is

Question topics

perpetual and periodic inventory systems

Purchase returns and allowances – Purchase discounts – Freight costs

Multiple step income statement * Single step income statement