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4 Written questions

3 Matching questions

  1. A perpetual inventory system would more likely be used by a (n)
    A. automobile dealership.
    B. hardware store.
    C. drugstore.
    D. convenience store.
  2. Which of the following appears on both a single-step and a multiple-step income statement?
    A. Inventory.
    B. Gross profit.
    C. Income from operations.
    D. Cost of goods sold.
  3. Sales Returns and Allowances is a contra revenue account to Sales and has a normal debit balance.
    A. True
    B. False
  1. a A
  2. b D
  3. c TRUE

5 Multiple choice questions

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

5 True/False questions

  1. Villa Sales Company had the following amounts related to its business: Beginning inventory, $12,000; Purchases, $42,000; Net sales, $50,000; and Gross profit, $15,000. The amount of the ending inventory is
    A. $54,000.
    B. $77,000.
    C. $19,000.
    D. $35,000.
    D

          

  2. Operating expenses include all of the following except
    A. advertising expense.
    B. freight-out.
    C. insurance expense.
    D. interest expense.
    D

          

  3. If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending inventory is $50,000, cost of goods sold is
    A. $390,000.
    B. $370,000.
    C. $330,000.
    D. $420,000.
    B

          

  4. Which of the following accounts will appear in the trial balance of a merchandising company but not a service company?
    A. Salaries Expense.
    B. Inventory.
    C. Accumulated Depreciation.
    D. Dividends.
    B

          

  5. 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
    C