5 Written Questions
5 Matching Questions
- What is: measures the percentage of each dollar of sales that results in net income, computed by dividing net income by net sales.
- What is: An inventory system in which detailed records are not maintained and the cost of goods sold is determined only at the end of an accounting period.
- What is: A detailed inventory system in which the cost of each invewntory item is maintained and the rcords continuously show the inventory that should be on hand.
- Under the perpetual inventory system, purchases of merchandise for sale are recorded inan account called:
- Sales Returns and allowances and sales discounts are:
- a Inventory.
- b Profit Margin.
- c Contra revenue accounts
- d Periodic Inventory.
- e Perpetual Inventory.
5 Multiple Choice Questions
- Debit to Sales Returns
- total assets will be unchanged.
- current assets
- Sales revenue, cost of goods sold, and gross profit.
- At the end of the accounting period.
5 True/False Questions
What is the classification for Equipment? → current assets
What is the classification for Income Tax Expense? → Current Assets
How do you calculate the total operating expenses? → (Interest Expense) + Interest Income
What accounting constraint allows a company to ignore GAAP if an item is too small to impact a decision? → Long-term investments
What is: Primary source of revenue for a medrchandising company. → Sales Revenue