5 Written questions
5 Matching questions
- A purchaser, dissatisfied with merchandise received, may return the goods to the seller for credit. This transaction is known, by the seller, as a:
- Which is NOT a component of the operating cycle?
Payment of employees' wages
Purchase of inventory
Collection of cash form inventory sales
Sale of inventory
- What is: measures the percentage of each dollar of sales that results in net income, computed by dividing net income by net sales.
- Each of the following is a merchandising business EXCEPT:
Laundry and dry cleaners
Greeting card store
- How do you calculate other revenues and expenses?
- a Payment of employees' wages
- b Laundry and dry cleaners.
- c (Interest Expense) + Interest Income
- d Profit Margin.
- e Sales Return.
5 Multiple choice questions
- a measure of net income earned on each share of common stock.
- When the goods are transferred from the seller to the buyer.
- Intangible assets.
- expense recognition (matching)
- Sales Discount.
5 True/False questions
How do you calculate the gross margin? → Income from operations - Other revenue and expense - income tax expense
Freight costs incurred by the seller on outgoing merchandise are considered: → Operating expenses to the seller
In a classified balance sheet, assets are usually classified as: → Current assets; long-term investments; property, plant, and equipment; and intangible assets.
What is the classification for salaries payable? → Current Liabilities
Which inventory costing method can be used if each item of inventory is identifiable? → Specific identification