Accounting Homework Multiple Choice File Attached

MULTIPLE CHOICE

Question 1

• A company had sales of $375,000 and its gross profit was $157,500. Its cost of goods sold equals:

		$(217,000).
		$375,000.
		$157,500.
		$217,500.
		$532,500.

15 points  

Question 2

• A company purchased $1,800 of merchandise on December 5. On December 7, it returned $200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals:

		$200.
		$1,564.
		$1,568.
		$1,600.
		$1,800.

15 points  

Question 3

• An account used in the periodic inventory system that is not used in the perpetual inventory system is

		Merchandise Inventory
		Sales
		Sales Returns and Allowances
		Accounts Payable
		Purchases

15 points  

Question 4

• Brig Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:

		$770,000.
		$115,000.
		$390,000.
		$402,000.
		$408,000.

15 points  

Question 5

• Cost of goods sold:

		Is another term for merchandise sales.
		Is the term used for the cost of buying and preparing merchandise for sale.
		Is another term for revenue.
		Is also called gross margin.
		Is a term only used by service firms.

15 points  

Question 6

• Expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers are:

		General and administrative expenses.
		Cost of goods sold.
		Selling expenses.
		Purchasing expenses.
		Nonoperating activities.

15 points  

Question 7

• Herald Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Herald Company’s net sales equals:

		$5,200.
		$129,800.
		$133,000.
		$135,000.
		$140,200.

15 points  

Question 8

• Merchandise inventory:

		Is a long-term asset.
		Is a current asset.
		Includes supplies.
		Is classified with investments on the balance sheet.
		Must be sold within one month.

15 points  

Question 9

• On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. The journal entry or entries that Courtland will make on October 1 is:
•   

		Choice A
		Choice B
		Choice C
		Choice D
		Choice E

15 points  

Question 10

• On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. Carter pays the invoice on October 8, and takes the appropriate discount. The journal entry that Courtland makes on October 8 is:
•   

		Choice A
		Choice B
		Choice C
		Choice D
		Choice E

15 points  

Question 11

• On October 1, Mutch Company sold merchandise in the amount of $5,800 to Carr Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Mutch uses the perpetual inventory system. On October 4, Carr returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Mutch must make on October 4 is:
•   

		Choice A
z		Choice B
		Choice C
		Choice D
		Choice E

15 points  

Question 12

• On October 1, Robinson Company sold merchandise in the amount of $5,800 to Rosser, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robinson uses the perpetual inventory system. The journal entry or entries that Robinson will make on October 1 is:
•   

		Choice A
		Choice B
		Choice C
		Choice D

15 points  

Question 13

• The amount recorded for merchandise inventory includes all of the following except:

		Purchase discounts.
		Returns and allowances.
		Freight costs paid by the buyer.
		Freight costs paid by the seller.
		Trade discounts.

15 points  

Question 14

• The credit terms 2/10, n/30 are interpreted as:

		2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.
		10% cash discount if the amount is paid within 2 days, or the balance due in 30 days.
		30% discount if paid within 2 days.
		30% discount if paid within 10 days.
		2% discount if paid within 30 days.

15 points  

Question 15

• The current period’s ending inventory is:

		The next period’s beginning inventory.
		The current period’s cost of goods sold.
		The prior period’s beginning inventory.
		The current period’s net purchases.
		The current period’s beginning inventory.

• accounting_homework_15_questions_multiple_choice.docx

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Accounting Homework Multiple Choice File Attached was first posted on July 14, 2019 at 9:50 am.