ACC 290 WEEK 4 PRACTICE QUIZ NEW
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ACC 290 WEEK 4 PRACTICE QUIZ NEW
Question 1
A service company’s operating cycle is ordinarily shorter than that of a merchandising company.
The operating cycle of a merchandising company is ordinarily shorter than that of a service company.
Question 2
Due to the turnover time of inventory, merchandising companies have an operating cycle that is longer than a service company.
The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm.
Question 3
The cost of having merchandise delivered to the store is part of the cost of getting the inventory ready to sell. All costs incurred to get inventory ready to sell are included as part of Inventory account with a debit.
Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for which it must pay the shipping charges. Which of the following is one part of the required journal entry when Jax pays the shipping charges of $200?
Question 4
Sales Discounts is a contra account to Sales Revenue. It is reported on the income statement as a deduction from Sales Revenue.
Question 5
Two entries are required. One will record the sale with a debit to cash and a credit to sales revenue. The second entry is to reduce the inventory; debit cost of goods sold and credit inventory.
Which statement is true when recording the sale of goods for cash in a perpetual inventory system?
Question 6
Sales less cost of goods sold equals gross profit. Subtracting operating expenses from gross profit equals net income.
Net income is $15,000, operating expenses are $20,000, and net sales total $75,000. How much is cost of goods sold?
Question 7
Cost of goods sold is subtracted from net sales to calculate gross profit.
Which one of the following will result in gross profit?...