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5 Written questions

5 Matching questions

  1. A purchaser, dissatisfied with merchandise received, may return the goods to the seller for credit. This transaction is known, by the seller, as a:
  2. 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
  3. What is: measures the percentage of each dollar of sales that results in net income, computed by dividing net income by net sales.
  4. Each of the following is a merchandising business EXCEPT:
    Laundry and dry cleaners
    Grocery store
    Department Store
    Greeting card store
  5. How do you calculate other revenues and expenses?
  1. a Payment of employees' wages
  2. b Laundry and dry cleaners.
  3. c (Interest Expense) + Interest Income
  4. d Profit Margin.
  5. e Sales Return.

5 Multiple choice questions

  1. a measure of net income earned on each share of common stock.
  2. When the goods are transferred from the seller to the buyer.
  3. Intangible assets.
  4. expense recognition (matching)
  5. Sales Discount.

5 True/False questions

  1. How do you calculate the gross margin?Income from operations - Other revenue and expense - income tax expense


  2. Freight costs incurred by the seller on outgoing merchandise are considered:Operating expenses to the seller


  3. In a classified balance sheet, assets are usually classified as:Current assets; long-term investments; property, plant, and equipment; and intangible assets.


  4. What is the classification for salaries payable?Current Liabilities


  5. Which inventory costing method can be used if each item of inventory is identifiable?Specific identification


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