question archive 1) The operating cycle of a merchandising company is ordinarily shorter than that of a service company True False 2) The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm
1) The operating cycle of a merchandising company is ordinarily shorter than that of a service company True False 2) The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm
Subject:AccountingPrice: Bought3
1) The operating cycle of a merchandising company is ordinarily shorter than that of a service company
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True |
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False |
2) The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm.
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shorter than |
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longer than |
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has fewer steps than |
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the same as |
3) Which statement is true when recording the sale of goods for cash in a perpetual inventory system?
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Only one journal entry is necessary. It will record the receipt of cash and sales revenue. |
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Two journal entries are necessary: one to record the receipt of cash and reduction of inventory, and one to record the the cost of goods sold and sales revenue. |
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Two journal entries are necessary: one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and to reduce inventory. |
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Only one journal entry is necessary. It will record cost of goods sold and reduce of inventory. |
4) Net income is $15,000, operating expenses are $20,000, and net sales total $75,000. How much is cost of goods sold?
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$35,000 |
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$60,000 |
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$40,000 |
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$15,000 |
5) Which one of the following will result in gross profit?
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Sales revenue less cost of goods sold |
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Operating expenses less cost of goods sold |
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Operating expenses less net income |
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Sales revenue less operating expenses |
6) Under what system is cost of goods sold determined at the end of an accounting period?
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Periodic inventory system |
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Double entry inventory system |
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Perpetual inventory system |
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Single entry inventory system |
7) Net income is $15,000, operating expenses are $20,000, net sales total $75,000, and sales revenues total $95,000. How much is the profit margin?
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79% |
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20% |
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16% |
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75% |
8) In a periodic inventory system, when is the cost of the merchandise sold determined?
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At the time of the sale |
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At the end of the period |
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Either at time of sale, end of period or periodically during the period |
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Periodically during the period |
9) Waymon Co. has net sales of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit?
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Gross profit |
$ |
10) Masie Ascot believes revenues from credit sales may be recorded before they are collected in cash. Do you agree? Explain.
