Accounting For Merchandising quiz

Financial Accounting Quiz

On Feb 4, 2026

Accounting For Merchandising

10 questions in 10 minutes

Pass Score 70%

1 / 10

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

purchases on account are debited to Purchases

freight costs are debited to Purchases

purchases on account are debited to Inventory

purchase returns are debited to Purchase Returns and Allowances

2 / 10

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

an investing activities section

a sales revenue section

cost of goods sold

gross proft

3 / 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 sales revenue, and one to record the cost of goods sold and reduction of inventory

only one journal entry is necessary to record the receipt of cash and the 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 reduction of inventory, and one to record the cost of goods sold and sales revenue

4 / 10

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

Income from operations

Inventory

Gross proft

Cost of goods sold

5 / 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

Purchase Discounts

Purchases

Freight-In

6 / 10

In determining cost of goods sold in a periodic system :

purchase discounts are deducted from net purchases

freight-in is added to net purchases

purchase returns and allowances are deducted from net purchases

freight-out is added to net purchases

7 / 10

The sales accounts that normally have a debit balance are :

Sales Discounts

(Sales Discounts) and (Sales Returns and Allowances)

Sales Returns and Allowances

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

8 / 10

Gross profit will result if:

sales revenues are greater than operating expenses

sales revenues are greater than cost of goods sold

operating expenses are greater than cost of goods sold

operating expenses are less than net income

9 / 10

Under a perpetual inventory system, when goods are purchased for resale by a company :

purchases on account are debited to Purchases

freight costs are debited to Freight Out

purchases on account are debited to Inventory

purchase returns are debited to Purchase Returns and Allowances

10 / 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

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

Follow the Facebook page Accountants Quiz and join the group Accounting Quiz

Accounting For Merchandising quiz

10 questions in 10 minutes

Pass Score 70%

Question topics