Question : 91. The primary difference between a periodic and perpetual inventory system : 1234062

 

91. The primary difference between a periodic and perpetual inventory system is that a  A. periodic system determines the inventory on hand only at the end of the accounting periodB. periodic system keeps a record showing the inventory on hand at all timesC. periodic system provides an easy means to determine inventory shrinkageD. periodic system records the cost of the sale on the date the sale is made

92. The inventory system employing accounting records that continuously disclose the amount of inventory is called  A. retailB. periodicC. physicalD. perpetual

93. When the perpetual inventory system is used, the inventory sold is shown on the income statement as  A. cost of merchandise soldB. purchasesC. purchases returns and allowancesD. net purchases

94. When comparing a retail business to a service business, the financial statement that changes the most is the  A. Balance SheetB. Income StatementC. Statement of Retained EarningsD. Statement of Cash Flow

95. When comparing a retail business to a service business, the financial statement that changes the least is the  A. Balance SheetB. Income StatementC. Statement of Retained EarningsD. Statement of Cash Flow

96. Gross profit is equal to: A. sales plus (sales discounts and sales returns and allowances) plus cost of merchandise soldB. sales plus sales returns and allowances less sales discounts less cost of merchandise soldC. sales plus sales discounts less sales returns and allowances less cost of merchandise soldD. sales less (sales discounts and sales returns and allowances) less cost of merchandise sold

97. Using the following information, what is the amount of cost of merchandise sold? 

Purchases

$28,000

 

Purchases discounts

$800

Merchandise inventory April 1

6,500

 

Merchandise inventoryApril 30

7,800

Sales returns and allowances

750

 

Sales

57,000

Purchases returns and allowances

1,000

 

Transportation In

880

 

 

 

 

 

 A. 25,780B. 23,270C. 31,220D. 24,020

98. Using the following information, what is the amount of gross profit?

Purchases

$28,000

 

Purchases discounts

$800

Merchandise inventoryApril 1

6,500

 

Merchandise inventoryApril 30

7,800

Sales returns andallowances

750

 

Sales

57,000

Purchases returns andallowances

1,000

 

Transportation In

880

 

 

 

 

 

 A. 31,970B. 30,470C. 25,780D. 56,250

99. Using the following information, what is the amount of net sales? 

Purchases

$28,000

 

Purchases discounts

$800

Merchandise inventoryApril 1

6,500

 

Merchandise inventoryApril 30

7,800

Sales returns andallowances

750

 

Sales

57,000

Purchases returns andallowances

1,000

 

Transportation In

880

 

 

 

 

 

 A. 25,780B. 57,000C. 57,750D. 56,250

100. Using the following information, what is the amount of merchandise available for sale? 

Purchases

$28,000

 

Purchases discounts

$800

Merchandise inventoryApril 1

6,500

 

Merchandise inventoryApril 30

7,800

Sales returns andallowances

750

 

Sales

57,000

Purchases returns andallowances

1,000

 

Transportation In

880

 

 

 

 

 

 A. 33,580B. 30,470C. 25,780D. 34,500

 

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