Question : 91.The following data from the income statement of Randall Company: The : 1254382

91.The following data is from the income statement of Randall Company:  The company’s gross margin percentage is:   

A. 15.625%.

B. 40.625%.

C. 59.375%.

D. none of these.

92.Apex Company uses the periodic inventory cost flow method. If Apex’s ending inventory is overstated due to an accounting error, what is the effect on net income and retained earnings?     

A. Option A

B. Option B

C. Option C

D. Option D

93.Southland Company uses the periodic inventory method. The following balances were drawn from the accounts of Southland Company prior to the closing process:  The amount of gross margin appearing on the income statement should be:   

A. $3,600.

B. $4,200.

C. $7,800.

D. $9,400.

94.Georgia Co. had beginning inventory of $800 and ending inventory of $400. The cost of goods sold was $3,200. Based on this information, Georgia Co. must have purchased inventory amounting to:   

A. $2,800.

B. $3,200.

C. $3,600.

D. $4,400.

95.The following information for the year 2014 is taken from the accounts of Thayer Company. The company uses the periodic inventory method.  Based on this information, the inventory at December 31, 2014 is   

A. $27,600.

B. $20,200.

C. $19,400.

D. $12,200.

96.The following T-accounts are from the ledger of Hiatt Company. Hiatt uses the periodic inventory system.  Which of the following is true about Hiatt Company?   

A. When merchandise is sold, the Purchases account will be credited for cost of goods sold.

B. The accounts indicate that Hiatt returned $6,000 of merchandise to a supplier.

C. The balance in the purchases account will appear on the balance sheet at year end.

D. The T-accounts indicate that Hiatt purchased inventory on account.

97.What event and inventory method may have produced the following journal entry?     

A. A return of goods by a customer under the periodic inventory method.

B. A sale of goods under the periodic inventory method.

C. A return of goods by a customer under the perpetual inventory method.

D. A sale of goods under the perpetual inventory method.

98.The chief advantage of the periodic system is:   

A. better control over inventory.

B. immediate feedback on the inventory on hand at any time during the period.

C. timelydiscovery of losses due to theft.

D. efficiency and ease of recording.

99.Which of the following account titles is normally used in a periodic inventory system?   

A. Transportation-in.

B. Purchases.

C. Purchase Returns and Allowances.

D. All of these are normally used.

100.Which factor has removed most of the practical limitations associated with use of the perpetual inventory system?   

A. A more honest work force.

B. Recent changes in GAAP.

C. Advancements in technology.

D. Recent changes in federal and state laws.

101.Under a periodic system, the account debited for shipping costs on goods received from the vendor is called:   

A. Merchandise Inventory

B. Cost of Goods Sold

C. Transportation-in

D. Transportation-out

102.Under a periodic inventory system, the buyer does not use which of the following accounts in recording purchases and related transactions?   

A. Purchases

B. Purchase Returns and Allowances

C. Purchase Discounts

D. Merchandise Inventory