Question : 11) James, a customer, purchased $500 of merchandise from Haskins, : 1232289

Accounting

11) James, a customer, purchased $500 of merchandise from Haskins, Inc. Under the perpetual inventory system, Haskins, Inc. will record a:

A) debit to Accounts Receivable or to Cash for $500.

B) credit to Accounts Receivable or to Cash for $500.

C) credit to Cost of Goods Sold for $500.

D) debit to Sales for $500.

12) Merchandise returned by the customer for a cash refund is called a:

A) sales return.

B) sales allowance.

C) debit memorandum.

D) credit memorandum.

13) An entry that has more than one debit and/or credit is called a:

A) double entry.

B) compound entry.

C) multiple-step entry.

D) special entry.

14) Under a perpetual inventory system, when goods are returned to the retailer from a customer:

A) Cost of Goods Sold is debited; Sales Returns and Allowances is credited.

B) Sales Returns and Allowances is debited; Cost of Goods Sold is credited.

C) Sales is debited; Cost Goods Sold is credited.

D) Inventory is debited; Sales is credited.

15) The General Store has cash sales for the week of $5,000 and credit sales of $3,500. The account(s) to be debited for these transactions is/are:

A) MasterCard sales; Visa sales; and cash.

B) Cash; Accounts Receivable.

C) Cash only.

D) MasterCard sales; Visa sales.

16) Sales is a(n) ________ account.

A) asset

B) liability

C) revenue

D) contra-

17) Sales Returns and Allowances appear on the:

A) balance sheet.

B) statement of retained earnings.

C) income statement.

D) income statement and balance sheet.

18) Victoria buys $775 of merchandise on account from Hernandez and Sons. Her customer terms are 3/10, n/45. The amount of her discount if she pays within the discount period is:

A) $ 77.50.

B) $ 23.25.

C) $697.50.

D) $ 0. 00.

19) Costs of Goods Sold includes which of the following?

A) The actual cost of the item

B) Administrative fees

C) Management salaries

D) Depreciation expense

20) When a retailer sells merchandise on account, the general entry for the sale’s price would be:

A) debiting Accounts Receivable and crediting Sales.

B) debiting Accounts Receivable and crediting Inventory.

C) debiting Accounts Receivable and crediting Cost of Goods Sold.

D) debiting Cost of Goods Sold and crediting Sales.

21) The entry to record the company’s cost of selling merchandise under a perpetual inventory system would be a:

A) debit to Accounts Receivable and a credit to Sales.

B) debit to Inventory and a credit to Cost of Goods Sold.

C) debit to Cost of Goods Sold and a credit to Inventory.

D) debit to Cost of Goods Sold and a credit to Sales.

22) Michelle, a customer of Regal Company, returned $45 of goods that were purchased on account. Under the perpetual inventory system, Regal will record a:

A) debit to Sales Returns and Allowances and a credit to Accounts Receivable-Michelle for $45.

B) debit to Sales and a credit to Accounts Receivable-Michelle for $45.

C) debit to Cost of Goods Sold and a credit to Inventory for $45.

D) debit to Sales and a credit to Cost of Goods Sold for $45.

23) Mackay Manufacturing had sales for the week of $3,569, of which $2,900 was on credit and $659 in cash sales. The cost of the merchandise sold was $1,888. The journal entries would include a:

A) debit to Cost of Goods Sold for $1,888; credit to Inventory for $1,888.

B) debit to Cash for $3569, credit to Sales for $3,569.

C) debit to Cash for $3,569 and a credit to Cost of Goods Sold for $3,569.

D) debit to Cost of Goods Sold for $1,888; credit to Sales of $1,888.

24) When a merchandiser sells on account, which of the following accounts is NOT needed to record the transaction?

A) Cost of Goods Sold

B) Accounts Receivable

C) Inventory

D) Cash

25) Net sales is computed by taking:

A) Gross Sales – Sales Returns and Allowances + Sales Discounts.

B) Gross Sales – Sales Returns and Allowances – Sales Discounts.

C) Gross Sales + Sales Returns and Allowances + Sales Discounts.

D) Gross Sales – Cash received for sales.

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July 1, 2023

11) If Russia has a comparative advantage in the production of wheat and China has a comparative advantage in the production of textiles, then

A) neither country has anything to gain from specialization and trade.

B) it is reasonable to expect that specialization will benefit both countries, but trade will not.

C) it is reasonable to expect that specialization and trade will benefit both countries.

D) it is reasonable to expect that trade will benefit both countries, but specialization will not.

12) If Brazil has a comparative advantage in the production of coffee compared to the United States, then

A) Brazil also has an absolute advantage in the production of coffee.

B) the United States has an absolute advantage in the production of coffee.

C) Brazil can produce coffee at a lower opportunity cost than the United States.

D) the United States cannot produce coffee.

13) The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage,

A) only the production of wheat will increase.

B) the production and consumption of both goods will increase.

C) only the production of both goods will increase.

D) only the consumption of both goods will increase.

14) Suppose that Japan and India are both engaged in the production of radios and rice, and that Japan has an absolute advantage in the production of both goods. If India has a lower opportunity cost for producing rice, then

A) India has a comparative advantage in rice production, but there will be no gains from specialization and trade.

B) Japan has a comparative advantage in the production of both goods.

C) India has a comparative advantage in the production of rice, but it is outweighed by Japan's absolute advantage in rice production.

D) India has a comparative advantage in the production of rice, and specialization and trade between the two countries can be mutually beneficial.

15) If the slopes of the production possibility frontiers involving sugar and rice in countries A and B are equal,

A) the opportunity cost of producing sugar is less in Country A.

B) the opportunity cost of producing rice is less in Country B.

C) specialization does not benefit either country.

D) each country will produce identical quantities of sugar and rice.

16) Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a comparative advantage in the production of copper, then Chile

A) has a lower opportunity cost for copper, which means that it should specialize in production of copper and engage in trade.

B) has a lower opportunity cost for producing copper, but specialization is not feasible because Argentina has a lower monetary cost of copper production.

C) has a higher opportunity cost for copper, which means it should specialize in the production of wheat and engage in trade.

D) should continue to produce copper, but only for domestic consumption, because trade is not a viable option.

Refer to the information provided in Table 19.1 below to answer the questions that follow.

Table 19.1

17) Refer to Table 19.1. In Mexico, the opportunity cost of 1 bushel of bananas is

A) 1/2 bushel of oranges.

B) 1 bushels of oranges.

C) 2 bushel of oranges.

D) 5 bushels of oranges.

18) Refer to Table 19.1. In Guatemala, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.

B) 1 bushels of bananas.

C) 2 bushel of bananas.

D) 4 bushels of bananas.

19) Refer to Table 19.1. In Mexico, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.

B) 1 bushels of bananas.

C) 2 bushel of bananas.

D) 5 bushels of bananas.

20) Refer to Table 19.1. In Guatemala, the opportunity cost of 1 bushel of bananas is

A) 1/2 bushel of oranges.

B) 1 bushels of oranges.

C) 2 bushel of oranges.

D) 4 bushels of oranges.