Ch. 5 Quiz Accounting

Baker Fine Foods has beginning inventory for the year of $12,000. During the year, Baker purchases inventory for $150,000 and ends the year with $20,000 of inventory. Baker will report cost of goods sold equal to

$142,000

Beginning inventory is $30,000. Purchases of inventory during the year are $50,000. Cost of goods sold is $60,000. What is ending inventory?

$20,000

During 2015, Parker Enterprises generated revenues of $90,000. The company s expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker s income from operations is

$27,000

Ravens Inc. has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and nonoperating expenses of $2,000. What is the company's gross profit?

$80,000

a manufacturer's inventory consists of what type of inventory?

All of the other answers are included in a manufacturer's inventory

Paden Company purchased merchandise from Emmett Company with freight terms of FOB shipping point. The freight costs will be paid by the

Buyer.

On July 9, Sheb Company sells goods on credit to Wooley Company for $5,000, terms 1/10, n/60. Sheb receives payment on July 18. The entry by Sheb on July 18 is:

Cash 4,950 (debit) Sales Discounts 50 (debit) Accounts Receivable 5,000 (credit)

The cost of the goods that a company sold during a period is shown in its financial statements as ___________ and the cost of the goods that a company still has on hand at the end of the year is shown in the financial statements as ____________.

Cost of goods sold; inventory

Sales revenue less cost of goods sold is called

Gross profit

Which one of the following is shown on a multiple-step but not on a single-step income statement?

Gross profit

What type of company purchases raw materials and makes goods to sell?

Manufacturer

The type of income statement that classifies items as operating and nonoperating is the ______ income statement

Multiple-step

Detailed records of goods held for resale are not maintained under a

Periodic inventory system.

Inventory items on an assembly line in various stages of production are classified as

Work in process.

Inventory is

reported as a current asset on the balance sheet.