5 Written questions
3 Matching questions
- Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system?
C. Cost of Goods Sold.
D. Purchase Discounts.
- The following amounts relate to Amato Company for the current year: Beginning Inventory, $20,000; Ending Inventory, $28,000; Purchases, $166,000; Purchase Returns, $4,800; and Freight-Out, $6,000. The amount of Cost of Goods Sold for the period is
- If Sales Revenue is $400,000, Cost of Goods Sold is $310,000, and Operating expenses are $60,000, the Gross profit is
- a C
- b B
- c D
5 Multiple choice questions
5 True/False questions
Income from operations appears on
A. both a multiple-step and a single-step income statement.
B. neither a multiple-step nor a single-step income statement.
C. a multiple-step income statement only.
D. a single-step income statement only. → C
A perpetual inventory system would more likely be used by a (n)
A. automobile dealership.
B. hardware store.
D. convenience store. → A
Cost of goods available for sale is computed by adding
A. inventory to ending inventory.
B. beginning inventory to the cost of goods purchased.
C. purchases and freight-in.
D. purchases to purchases discounts and freight-in. → False
All of the following are contra revenue accounts except
A. Sales Revenue.
B. Sales Allowances.
C. Sales Discounts.
D. Sales Returns. → D
The account Sales Discounts is a(n)
A. revenue account.
B. contra revenue account.
C. liability account.
D. expense account. → C