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5 Written questions

3 Matching questions

  1. In a periodic inventory system the entry to record the sale of merchandise on account affects which of the following accounts?
    A. Cost of Goods Sold.
    B. Purchases.
    C. Inventory.
    D. Sales Revenue.
  2. In a perpetual inventory system, which of the following would be debited when goods are purchased with the intent of being resold?
    A. Cost of Goods Sold.
    B. Inventory.
    C. Purchases.
    D. Accounts Payable.
  3. In a worksheet, Inventory is shown in the following columns
    A. adjusted trial balance debit and balance sheet debit.
    B. income statement debit and balance sheet debit.
    C. income statement credit and balance sheet debit.
    D. income statement credit and adjusted trial balance debit.
  1. a B
  2. b A
  3. c D

5 Multiple choice questions

  1. TRUE
  2. False
  3. B
  4. D
  5. B

5 True/False questions

  1. All of the following are contra revenue accounts except
    A. Sales Revenue.
    B. Sales Allowances.
    C. Sales Discounts.
    D. Sales Returns.
    D

          

  2. Sales Returns and Allowances is a contra revenue account to Sales and has a normal debit balance.
    A. True
    B. False
    B

          

  3. Under a perpetual inventory system, which of the following is not part of the journal entries made when merchandise is sold on credit?
    A. credit the Cost of Goods Sold account.
    B. credit the Sales Revenue account.
    C. credit the Inventory account.
    D. debit the Accounts Receivable account.
    A

          

  4. 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.
    B

          

  5. If Sales Revenue is $400,000, Cost of Goods Sold is $310,000, and Operating expenses are $60,000, the Gross profit is
    A. $30,000.
    B. $90,000.
    C. $340,000.
    D. $400,000.
    B