Accounting For Merchandising quiz Inventory Accounting Quiz Share 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 : 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 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 balance sheet debit adjusted trial balance debit and balance sheet debit income statement credit and adjusted trial balance debit 3 / 10 A single step income statement : reports operating income separately does not report cost of goods sold reports gross proft reports sales revenues and “Other revenues and gains” in the revenues section of the income statement 4 / 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 5 / 10 If sales revenues are $500,000, cost of goods sold is $400,000, and operating expenses are $50,000, the gross proft is : $50,000 $100,000 $450,000 $500,000 gross proft = sales revenues $500,000 - cost of goods sold $400,000 =$100,000 6 / 10 Under a perpetual inventory system, when goods are purchased for resale by a company : purchases on account are debited to Purchases purchases on account are debited to Inventory purchase returns are debited to Purchase Returns and Allowances freight costs are debited to Freight Out 7 / 10 Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system ? Purchases Purchase Discounts Cost of Goods Sold Freight-In 8 / 10 Gross profit will result if: 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 sales revenues are greater than operating expenses 9 / 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 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 only one journal entry is necessary to record the receipt of cash and the sales revenue 10 / 10 Which of the following appears on both a single-step and a multiple-step income statement ? Cost of goods sold Gross proft Income from operations Inventory 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
