Accounting For Merchandising quiz Inventory Accounting Quiz Share Accounting For Merchandising 10 questions in 10 minutes Pass Score 70% 1 / 10 A single step income statement : reports operating income separately does not report cost of goods sold reports sales revenues and “Other revenues and gains” in the revenues section of the income statement reports gross proft 2 / 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 income statement credit and balance sheet debit adjusted trial balance debit and balance sheet debit 3 / 10 Under a perpetual inventory system, when goods are purchased for resale by a company : purchase returns are debited to Purchase Returns and Allowances freight costs are debited to Freight Out purchases on account are debited to Inventory purchases on account are debited to Purchases 4 / 10 Gross profit will result if: operating expenses are greater than cost of goods sold sales revenues are greater than cost of goods sold sales revenues are greater than operating expenses operating expenses are less than net income 5 / 10 When goods are purchased for resale by a company using a periodic inventory system : purchase returns are debited to Purchase Returns and Allowances freight costs are debited to Purchases purchases on account are debited to Inventory purchases on account are debited to Purchases 6 / 10 If sales revenues are $500,000, cost of goods sold is $400,000, and operating expenses are $50,000, the gross proft is : $500,000 $100,000 $450,000 $50,000 gross proft = sales revenues $500,000 - cost of goods sold $400,000 =$100,000 7 / 10 The sales accounts that normally have a debit balance are : Neither (Sales Discounts) nor (Sales Returns and Allowances) Sales Discounts (Sales Discounts) and (Sales Returns and Allowances) Sales Returns and Allowances 8 / 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 Purchases Purchase Discounts Freight-In 9 / 10 The multiple step income statement for a merchandising company shows each of the following featuresexcept: an investing activities section cost of goods sold a sales revenue section gross proft 10 / 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 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 only one journal entry is necessary to record the receipt of cash and the sales revenue 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
