NAME

Question types


Start with


Question limit

of 59 available terms

Advertisement Upgrade to remove ads
Print test

5 Written questions

3 Matching questions

  1. Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system?
    A. Purchases.
    B. Freight-in.
    C. Cost of Goods Sold.
    D. Purchase Discounts.
  2. 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
    A. $159,200.
    B. $169,200.
    C. $162,800.
    D. $153,200.
  3. 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.
  1. a C
  2. b B
  3. c D

5 Multiple choice questions

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

5 True/False questions

  1. 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

          

  2. A perpetual inventory system would more likely be used by a (n)
    A. automobile dealership.
    B. hardware store.
    C. drugstore.
    D. convenience store.
    A

          

  3. 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

          

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

          

  5. The account Sales Discounts is a(n)
    A. revenue account.
    B. contra revenue account.
    C. liability account.
    D. expense account.
    C