Question : 101. On October 1, Robertson Company sold merchandise in the amount : 1256832

 

 

101. On October 1, Robertson Company sold merchandise in the amount of $5,800 to Alberts, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses the perpetual inventory system. On October 4, Alberts returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Robertson must make on October 4 is:

 

A.

Sales Returns and Allowances

500

 

Accounts Receivable

 

500

Merchandise Inventory

350

 

Cost of Goods Sold

 

350

 

B.

Sales Returns and Allowances

500

 

Accounts Receivable

 

500

 

C.

Accounts Receivable

500

 

Sales Returns and Allowances

 

500

 

D.

Accounts Receivable

500

 

Sales Returns and Allowances

 

500

Cost of Goods Sold

350

 

Merchandise Inventory

 

350

 

E.

Sales Returns and Allowances

350

 

Accounts Receivable

 

350

 

 

 

102. Which of the following accounts would be closedwith a debit? 

A. Sales Discounts

B. Sales Returns and Allowances

C. Cost of Goods Sold

D. Operating Expenses

E. Sales

 

 

103. Which of the following statements istrue regarding the closing process of a merchandiser? 

A. Sales Discounts, Sales Returns and Allowances, and Cost of Goods sold should all be credited during closing.

B. Sales Discounts, Sales Returns and Allowances, and Cost of Goods sold should all be debited during closing.

C. Sales Discounts and Sales Returns and Allowances should be debited; Cost of Goods Sold should be credited during closing.

D. Sales Discounts and Sales Returns and Allowances should be credited; Cost of Goods Sold should be debited during closing.

E. Sales Discounts and Sales Returns and Allowances are not closed. Cost of Goods Sold should be credited during closing.

 

 

104. An income statement that includes cost of goods sold as another expense and shows only one subtotal for total expenses is a: 

A. Balanced income statement.

B. Single-step income statement.

C. Multiple-step income statement.

D. Combined income statement.

E. Simplified income statement.

 

 

105. Expenses that support the overall operations of a business and include the expenses relating to accounting, human resource management, and financial management are called: 

A. Cost of goods sold.

B. Selling expenses.

C. Purchasing expenses.

D. General and administrative expenses.

E. Nonoperating activities.

 

 

106. Alpha Company had cash sales of $94,275, credit sales of $83,450, sales returns and allowances of $1,700, and sales discounts of $3,475. Alpha’s net sales for this period equal: 

A. $94,275

B. $172,550

C. $174,250

D. $176,025

E. $177,725

 

107. A company had cash sales of $49,527, credit sales of $38,540, sales returns and allowances of $7,100, and sales discounts of $4,375. The company’s net sales for this period equal: 

A. $80,967

B. $83,692

C. $88,067

D. $76,592

E. $99,542

 

 

108. Multiple-step income statements: 

A. Are required by the FASB.

B. Contain more detail than a simple listing of revenues and expenses.

C. Are required for the perpetual inventory system.

D. List cost of goods sold as an operating expense.

E. Can only be used in perpetual inventory systems.

 

 

109. An account used in the periodic inventory system that is not used in the perpetual inventory system is: 

A. Merchandise Inventory

B. Sales

C. Sales Returns and Allowances

D. Accounts Payable

E. Purchases

 

 

110. When preparing an unadjusted trial balance using a periodic inventory system, the amount shown for merchandise inventory is: 

A. The ending inventory amount.

B. The beginning inventory amount.

C. Equal to the cost of goods sold.

D. Equal to the cost of goods purchased.

E. Equal to the gross profit.