acct 201
The following amounts relate to Amato Company for the current year: Beginning Inventory, $20,000; Ending Inventory, $28,000; Purchases, $166,000; Purchase Returns, $4,800; and Freight-Out, $6,000. The amount of Cost of Goods Sold for the period is
153,000
If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending inventory is $50,000, cost of goods sold is
390,000
Baden Shoe Store has a beginning merchandise inventory of $15,000. During the period, purchases were $70,000; purchase returns, $2,000, and freight-in $5,000. A physical count of inventory at the end of the period revealed that $10,000 was still on hand. The cost of goods available for sale was
88,000
If Sales Revenue is $400,000, Cost of Goods Sold is $310,000, and Operating expenses are $60,000, the Gross profit is
90,000
Company A purchases $1,200 of merchandise from Company B on July 1 with credit terms 2/10, n/30. Company A returns $200 of the merchandise on July 5. On July 11, Company B received full payment from Company A. The amount of the payment on July 11 is
980
Which of the following appears on both a single-step and a multiple-step income statement?
COGS
Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system?
Cost of Goods Sold.
FOB destination means that the seller places the goods free on board the common carrier and the buyer pays the freight costs.
False
In a periodic inventory system, companies keep detailed inventory records of the goods on hand throughout the period.
False
Sales revenue less cost of goods sold is called net profit.
False
Income from operations is
Gross profit less operating expenses
Which of the following accounts is not closed to Income Summary?
Inventory
Which of the following accounts will appear in the trial balance of a merchandising company but not a service company?
Inventory
The multiple-step income statement for a merchandising company shows each of the following items except
Investing activities section.
Which of the following is shown on both a multiple-step and a single-step income statement?
Net Sales
Which of the following appears on both the income statements of merchandising and service companies?
Operating expenses
Which of the following expressions is incorrect?
Operating expenses less Cost of goods sold equals Gross profit.
All of the following are contra revenue accounts except
Sales Revenue
In a periodic inventory system the entry to record the sale of merchandise on account affects which of the following accounts?
Sales Revenue
Gross Profit is
Sales revenue less Cost of goods sold
A merchandiser using a perpetual system will require one additional adjusting entry to make the records agree with the actual inventory on hand.
True
Under a periodic system, the company uses separate accounts to record freight costs, returns, and discounts.
True
In a worksheet, Inventory is shown in the following columns
adjusted trial balance debit and balance sheet debit.
FOB shipping point means that the
buyer pays the freight
Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system?
cash received on account with a discount
Under a perpetual inventory system, which of the following is not part of the journal entries made when merchandise is sold on credit?
credit the Cost of Goods Sold account.
A company that maintains a perpetual inventory system has an inventory account balance of $50,000. The physical count of goods on hand totals $49,600. Which of the following adjusting entries is correct?
debit Cost of Goods Sold and credit Inventory.
Under a perpetual inventory system, when goods are purchased for resale by a company
purchases on account are debited to Inventory.
With respect to the income statement,
sales discounts are included in the calculation of gross profit.
In a perpetual inventory system, the Cost of Goods Sold account is used
whenever there is a sale of merchandise or a return of merchandise sold.
