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5 Written questions

3 Matching questions

  1. Baden Shoe Store has a beginning merchandise inventory of $15,000. During the period, purchases were $70,000; purchase returns, $2,000, and freight-in $5,000. A physical count of inventory at the end of the period revealed that $10,000 was still on hand. The cost of goods available for sale was
    A. $82,000
    B. $78,000
    C. $88,000
    D. $92,000
  2. The steps in the accounting cycle for a merchandising company are the same as those in a service company except
    A. an additional adjusting journal entry for inventory may be needed in a merchandising company.
    B. closing journal entries are not required for a merchandising company.
    C. a post-closing trial balance is not required for a merchandising company.
    D. a multiple-step income statement is required for a merchandising company.
  3. A company has the following account balances: Sale Revenue, $1,000,000; Sales Returns and Allowances, $180,000; Sales Discounts, $20,000; and Cost of Goods Sold, $600,000. What is the company's gross profit rate?
    A. 50%.
    B. 25%.
    C. 60%.
    D. 75%.
  1. a A
  2. b C
  3. c B

5 Multiple choice questions

  1. A
  2. B
  3. C
  4. D
  5. B

5 True/False questions

  1. Which one of the following transactions is recorded with the same entry in a
    perpetual and a periodic inventory system?
    A. cash received on account with a discount
    B. payment of freight costs on a purchase
    C. return of merchandise sold
    D. sale of merchandise on credit
    D

          

  2. 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.
    D

          

  3. In a periodic inventory system, companies keep detailed inventory records of the goods on hand throughout the period.
    A. True
    B. False
    False

          

  4. Which of the following accounts is not closed to Income Summary?
    A. Cost of Goods Sold.
    B. Inventory.
    C. Sales Revenue.
    D. Sales Discounts.
    C

          

  5. A merchandiser using a perpetual system will require one additional adjusting entry to make the records agree with the actual inventory on hand.
    A. True
    B. False
    B