Accounting Homework Multiple Choice File Attached

MULTIPLE CHOICE

Question 1

  • A company had sales of $375,000 and its gross profit was $157,500. Its cost of goods sold equals:
  $(217,000).
  $375,000.
  $157,500.
  $217,500.
  $532,500.

15 points  

Question 2

  • A company purchased $1,800 of merchandise on December 5. On December 7, it returned $200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals:
  $200.
  $1,564.
  $1,568.
  $1,600.
  $1,800.

15 points  

Question 3

  • An account used in the periodic inventory system that is not used in the perpetual inventory system is
  Merchandise Inventory
  Sales
  Sales Returns and Allowances
  Accounts Payable
  Purchases

15 points  

Question 4

  • Brig Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:
  $770,000.
  $115,000.
  $390,000.
  $402,000.
  $408,000.

15 points  

Question 5

  • Cost of goods sold:
  Is another term for merchandise sales.
  Is the term used for the cost of buying and preparing merchandise for sale.
  Is another term for revenue.
  Is also called gross margin.
  Is a term only used by service firms.

15 points  

Question 6

  • Expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers are:
  General and administrative expenses.
  Cost of goods sold.
  Selling expenses.
  Purchasing expenses.
  Nonoperating activities.

15 points  

Question 7

  • Herald Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Herald Company’s net sales equals:
  $5,200.
  $129,800.
  $133,000.
  $135,000.
  $140,200.

15 points  

Question 8

  • Merchandise inventory:
  Is a long-term asset.
  Is a current asset.
  Includes supplies.
  Is classified with investments on the balance sheet.
  Must be sold within one month.

15 points  

Question 9

  • On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. The journal entry or entries that Courtland will make on October 1 is:
  •   
  Choice A
  Choice B
  Choice C
  Choice D
  Choice E

15 points  

Question 10

  • On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. Carter pays the invoice on October 8, and takes the appropriate discount. The journal entry that Courtland makes on October 8 is:
  •   
  Choice A
  Choice B
  Choice C
  Choice D
  Choice E

15 points  

Question 11

  • On October 1, Mutch Company sold merchandise in the amount of $5,800 to Carr Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Mutch uses the perpetual inventory system. On October 4, Carr returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Mutch must make on October 4 is:
  •   
  Choice A
z Choice B
  Choice C
  Choice D
  Choice E

15 points  

Question 12

  • On October 1, Robinson Company sold merchandise in the amount of $5,800 to Rosser, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robinson uses the perpetual inventory system. The journal entry or entries that Robinson will make on October 1 is:
  •   
  Choice A
  Choice B
  Choice C
  Choice D

15 points  

Question 13

  • The amount recorded for merchandise inventory includes all of the following except:
  Purchase discounts.
  Returns and allowances.
  Freight costs paid by the buyer.
  Freight costs paid by the seller.
  Trade discounts.

15 points  

Question 14

  • The credit terms 2/10, n/30 are interpreted as:
  2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.
  10% cash discount if the amount is paid within 2 days, or the balance due in 30 days.
  30% discount if paid within 2 days.
  30% discount if paid within 10 days.
  2% discount if paid within 30 days.

15 points  

Question 15

  • The current period’s ending inventory is:
  The next period’s beginning inventory.
  The current period’s cost of goods sold.
  The prior period’s beginning inventory.
  The current period’s net purchases.
  The current period’s beginning inventory.
  • accounting_homework_15_questions_multiple_choice.docx

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Accounting Homework Multiple Choice File Attached was first posted on July 14, 2019 at 9:50 am.