Accounting For Merchandising quiz Financial Accounting Quiz On Mar 15, 2024 Share /10 12345678910 Accounting For Merchandising 10 questions in 10 minutes Answers at the end of the exam Pass Score 70% enter full-screen mode by pressing the icon located in the top- right comer of the exam 1 / 10 The sales accounts that normally have a debit balance are : Sales Discounts Neither (Sales Discounts) nor (Sales Returns and Allowances) (Sales Discounts) and (Sales Returns and Allowances) Sales Returns and Allowances 2 / 10 When goods are purchased for resale by a company using a periodic inventory system : purchase returns are debited to Purchase Returns and Allowances purchases on account are debited to Inventory purchases on account are debited to Purchases freight costs are debited to Purchases 3 / 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 a post-closing trial balance is not 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 4 / 10 In a worksheet using a perpetual inventory system, Inventory is shown in the following columns : income statement credit and balance sheet debit income statement debit and balance sheet debit adjusted trial balance debit and balance sheet debit income statement credit and adjusted trial balance debit 5 / 10 Which of the following appears on both a single-step and a multiple-step income statement ? Inventory Income from operations Gross proft Cost of goods sold 6 / 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 7 / 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 8 / 10 Under a perpetual inventory system, when goods are purchased for resale by a company : purchase returns are debited to Purchase Returns and Allowances purchases on account are debited to Purchases freight costs are debited to Freight Out purchases on account are debited to Inventory 9 / 10 If sales revenues are $500,000, cost of goods sold is $400,000, and operating expenses are $50,000, the gross proft is : $450,000 $50,000 $500,000 $100,000 gross proft = sales revenues $500,000 - cost of goods sold $400,000 =$100,000 10 / 10 Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system ? Purchase Discounts Cost of Goods Sold Purchases Freight-In Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback Question topics perpetual and periodic inventory systems Purchase returns and allowances – Purchase discounts – Freight costs Multiple step income statement * Single step income statement Accounting For Merchandisingaccounting for merchandising businessaccounting for merchandising business examples