Hi, Could you help me with this problem? Thanks!
| 1.Inventory held by a business is a(n) _______ and when sold becomes a(n) _______ (Points : 1) |
liability, withdrawal
asset, expense
liability, asset
asset, contra asset |
| Question 2.2.A ________ inventory system keeps continuous records of inventory on hand and cost of goods sold. (Points : 1) |
merchandising
periodic
perpetual
service |
| Question 3.3.Which of the following accounts should be closed to income summary? (Points : 1) |
beginning inventory
sales returns and allowances
owner withdrawals
ending inventory |
| Question 4.4.A retailer that uses a bar code system to track inventory most likely uses ________. (Points : 1) |
a merchandising inventory system
a periodic inventory system
a perpetual inventory system
this cannot be determined from the information provided |
| Question 5.5.The inventory account shows an ending balance of $20,800. An actual count of inventory reveals $21,200 of inventory on hand. The adjusting entry involves_______. (Points : 1) |
credit to inventory for $20,500
credit to cost of goods sold for $20,100
debit to cost of goods sold for $400
debit to inventory for $400 |
| Question 6.6.The inventory account shows an ending balance of $20,500. An actual count of inventory reveals $20,100 of inventory on hand. The adjusting entry involves_______. (Points : 1) |
debit to inventory for $400
credit to cost of goods sold for $20,100
debit to cost of goods sold for $400
credit to inventory for $20,500 |
| Question 7.7.The entry to record the return of $25 of inventory to a supplier under the perpetual inventory system is recorded with a debit to_______. (Points : 1) |
accounts payable and a credit to purchase discounts
purchase returns and allowances and a credit to accounts payable
accounts payable and a credit to inventory
inventory and a credit to accounts payable |
| Question 8.8.Under a perpetual inventory system, which accounts would be closed to income summary with credits? (Points : 1) |
sales discounts, sales returns and allowances and cost of goods sold
sales returns and allowances, sales revenue and inventory
sales revenue and cost of goods sold
sales discounts and sales revenue |
Question 9.9.Marco Co. has the following account balances at year-end:
|
Debit |
Credit |
| Sales Revenue |
|
65,000 |
| Sales Discounts |
1,500 |
|
| Sales Returns and Allowances |
1,000 |
|
| Cost of Goods Sold |
23,000 |
|
| Rent Expense |
9,600 |
|
| Wages Expense |
15,000 |
|
| Utilities Expense |
2,500 |
|
| Depreciation Expense |
4,000 |
|
| Dividends |
6,000 |
|
After revenues and expenses are closed to income summary, the income summary account should have a ________ balance. (Points : 1) |
$8,400 credit
$8,400 debit
$2,400 credit
$2,400 debit |
| Question 10.10.Revenue that is outside the main operations of a business, such as gain on the sale of plant assets, is referred to as ________. (Points : 1) |
owner’s equity
gross profit
other revenue
net sales revenue |
| Question 11.11.Weatherby Company had sales of $180,000, sales returns and allowances of $12,000, and sales discounts of $3,500. They reported cost of goods sold of $85,000 and $32,000 in operating expenses. What was Weatherby Company’s gross profit? (Points : 1) |
$47,500
$59,500
$79,500
$83,000 |
| Question 12.12.Which of the following is the result of gross profit divided by net sales? (Points : 1) |
Current ratio
Gross profit percentage
Debt ratio
Rate of inventory turnover |
| Question 13.13.Robins Corp’s inventory turnover went from 2.0 in 20X1 to 1.8 in 20X2. This means that Robins Corp ________. (Points : 1) |
was more profitable in 20X2
was less profitable in 20X2
moved inventory more rapidly in 20X2
moved inventory less rapidly in 20X2 |
| Question 14.14.An income statement that contains subtotals to highlight significant relationships. In addition to net income, it reports gross profit and operating income. (Points : 1) |
Singe-step income statement
Multi-step income statement
Subtotal income statement
Trial income statement |
|
Question 15.15.Which of the following processes/concepts doesNOTapply under both international financial reporting standards and accounting standards for private enterprises? (Points : 1)
|
matching of revenues and expenses
periodic inventory system
perpetual inventory system
use of LIFO as an inventory method |
