Accounting For Merchandising quiz

Financial Accounting Quiz

On Mar 15, 2024

/10

Accounting For Merchandising

10 questions in 10 minutes

Answers at the end of the exam

Pass Score 70%

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1 / 10

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

Inventory

Income from operations

Cost of goods sold

Gross proft

2 / 10

In determining cost of goods sold in a periodic system :

freight-out is added to net purchases

purchase discounts are deducted from net purchases

purchase returns and allowances are deducted from net purchases

freight-in is added to net purchases

3 / 10

A single step income statement :

does not report cost of goods sold

reports gross proft

reports operating income separately

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

4 / 10

If sales revenues are $500,000, cost of goods sold is $400,000, and operating expenses are $50,000, the gross proft is :

$100,000

$500,000

$450,000

$50,000

5 / 10

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

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

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

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

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

6 / 10

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

Purchases

Cost of Goods Sold

Purchase Discounts

Freight-In

7 / 10

The sales accounts that normally have a debit balance are :

(Sales Discounts) and (Sales Returns and Allowances)

Sales Returns and Allowances

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

Sales Discounts

8 / 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 adjusted trial balance debit

adjusted trial balance debit and balance sheet debit

income statement credit and balance sheet debit

9 / 10

Gross profit will result if:

operating expenses are less than net income

operating expenses are greater than cost of goods sold

sales revenues are greater than operating expenses

sales revenues are greater than cost of goods sold

10 / 10

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

freight costs are debited to Purchases

purchase returns are debited to Purchase Returns and Allowances

purchases on account are debited to Inventory

purchases on account are debited to Purchases

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