Financial Accounting 2301 Quiz C

XYZ Company sold merchandise for $5,000 with payment in terms of 2/10,n/30. If the customer pays within the discount period and takes the discount, XYZ will receive: A.) $4,900 B.) $3,500 C.) $100 D.) $5,000

A

Bijoux Company has sales of $40,000, beginning inventory of $5,000, purchases of $25,000, and ending inventory of $7,000. The Cost Of Goods Sold is: A.) $17,000 B.) $30,000 C.) $40,000 D.) $ 23,000

D

On June 15, Oakley Inc. sells inventory on account to Sunglasses Hut (SH) for $1000, terms 2/10,n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $300. On June 24, SH completely fulfills its obligations to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley? A.) $700 B.) $680 C.) $1,000 D.) $686

D

When a company sells goods, it removes their cost from the balance sheet and reports the cost on the income statement as: A.) Selling Expense B.) Finished Goods Inventory C.) Inventory D.) Cost of Goods Sold

D

Alpha Company uses a periodic inventory system. The company bought 75 units of inventory for $4 each and 25 units for $5 each. Alpha's weighted average cost per unit is: A.) $4.25 B.) $4.00 C.) $4.50 D.) $5.00

A

Consider the following information: Sales Revenue- $600,000 Ending Inventory- 60,000 Cost Of Goods Sold- 400,000 Beginning Inventory- 50,000 What is the Number of Days To Sell? A.) 50.2 Days B.) 54.8 Days C.) 33.5 Days D.) 36.5 Days

A

The Truck Shop beganthe current month with inventory costing $10,000, then purchased inventory at a cost of $35,000. The perpetual inventory system indicates that inventory costing $30,000 was sold during the month for $40,000. If an inventory count shows that inventory costing $14,500 is actually on hand at the month-end, what ammount of shrinkage occured during the month? A.) $500 B.) $15,000 C.) $5,000 D.) $14,495

A

Delta Diamonds uses a periodic inventory system. The company had 5 1-carat diamonds available for sale this year: One was purchased on June 1st for $500, two were purchased on July 9th for $550 each, and two were purchased on September 23 for $600 each. On December 24, It sold one of the diamonds that was purchased on July 9th. Using the FIFO method it's cost of Goods Sold for the year ended is: A.) $1,200 B.) $500 C.) $600 D.) $1,100

B

Delta Diamonds uses a periodic inventory system. The company had 5 1-carat diamonds available for sale this year: One was purchased on June 1st for $500, two were purchased on July 9th for $550 each, and two were purchased on September 23 for $600 each. On December 24, It sold one of the diamonds that was purchased on July 9th. Using the LIFO method it's ending inventory (after December 24 sale) equals: A.) $2,250 B.) $2,200 C.) $2,300 D.) $600

B

Sales Discount is a __________________ account with a normal __________________ balance. A.) contra-asset; debit B.) contra-Revenue; debit C.) contra-asset; credit D.) contra-revenue; credit

B

If Inventory is updated periodically, which of the equations is correct? A.) Cost of Goods Sold = Beginning Inventory + Purchases + Ending Inventory B.) Ending Inventory = Beginning Inventory + Purchases + Cost of Goods Sold C.) Beginning Inventory + Purchases = Ending Inventory D.) Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory

D

Sales Revenue equals $367,810, sales returns and allowances are $10,000 and sales discounts total $14,180. The Cost of Goods Sold is $216,490, operating expenses are $28,500, and the company incurs $31,640 of income tax expense. Which of the following statements is correct? A.) Net Sales equal $67,000 and Gross Profit is $98,640. B.) Net Sales equal $343,630 and Gross Profit is $98,640 C.) Net Sales equal $367,810 and Gross Profit is $67,000 D.) Net Sales equals $343,630 and Gross Profit is $127,140

D