• 1. Sales revenue is
recognized in the period in which:
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• Question
2
2.451 out of 2.451 points
2.
Gross profit is the difference between:
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• Question
3
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3.
The credit term 2/10 n/30 means:
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• Question
4
0 out of 2.451 points
4.
Baker Products uses a perpetual inventory system. At year-end the
Inventory account had a balance of $368,000, but a complete year-end physical
inventory indicated goods on hand costing only $361,000. Baker should:
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• Question
5
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5.
Inventory shrinkage is caused by:
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• Question
6
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6.
Chicago Pizza reports net sales of $1,000,000, gross profit of $550,000,
and net income of $80,000. The company's cost of goods sold is:
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• Question
7
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7. The following information is available:
Sales $ 1,200
Inventory-year-end 500
Purchases 800
Cost of Goods Sold 900
Calculate the gross profit:
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• Question
8
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8.
During the year 2000, the inventory of Judy's Gift Shop decreased by
$30,000. If the income statement for the year 2000 reported cost of goods sold
of $200,000, purchases during the year must have amounted to:
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Selected
Answer:
D) Some other amount.
Correct Answer:
B) $170,000.
• Question
9
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9.
If cost of goods sold is $420,000 and the gross profit rate is 40%, what
is the gross profit?
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• Question
10
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10.
At the beginning of the year, Scott's Sportswear had an inventory of
$100,000. During the year, the company purchased merchandise costing $650,000.
Net sales for the year totaled $1,000,000, and the gross profit rate was 40%.
The cost of goods sold and the ending inventory, respectively, were:
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• Question
11
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11.
On July 1, the inventory of Shoes & Socks was $60,000. Because of
anticipated back-to-school sales, the owner wants to have an inventory of
$95,000 on hand at the beginning of August. Net sales during July are expected
to total $50,000, with a gross profit rate of 45%. During July, the company
should purchase merchandise costing:
Answer
Response
Feedback:
Q 17 Gross profit
rate 45% c/s reciprocal 55%
x July expected sales 50,000 =
27,500. Begin inventory 60,000 -
27,500 to be sold in July = 32,500.
They want 95,000 inventory at end of July, they will have - 32,500 =
62,500
• Question
12
2.451 out of 2.451 points
Use the following to answer
questions 12-14
TV Warehouse is a small retail business that specializes in
the sale of top-of-the-line televisions.
This year, the store has begun to carry the Flat TV manufactured by Hiltai
Co. Thus far this year, TV Warehouse has recorded the following transactions
involving the Flat TV:
Jan. 5. Purchased 7
Flat TVs at a unit cost of $1,800
Jan. 18. Purchased 4
additional Flat TVs at $1,800 each
Feb. 12. Sold 8 Flat
TVs to the Merry Hotel for $20,000
18. If TV Warehouse uses a perpetual inventory
system, the journal entry to record the purchase on January 18th would include
which of the following?
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• Question
13
2.451 out of 2.451 points
13.
If TV Warehouse uses a perpetual inventory system, the journal entry to
record the sale on February 12th would include all of the following except:
Answer
14. TV Warehouse maintains a
subsidiary ledger account for each type of TV carried in the store. An
examination of the account for the Flat TV model at the end of February would
show:
