Question : 111. Multiple-step income statements: A. Are required by the FASB. B. Contain more detail than : 1225808

111. 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.

112. Expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers are: 

A. General and administrative expenses.

B. Cost of goods sold.

C. Selling expenses.

D. Purchasing expenses.

E. Nonoperating activities.

113. A company has net sales and cost of goods sold of $752,000 and $543,000, respectively. Its net income is $17,530. The company’s gross margin and operating expenses are ________ and ___________, respectively. 

A. $209,000; $191,470

B. $191,470; $209,000

C. $525,470; $227,000

D. $227,000; $525,470

E. $734,000; $191,470

114. 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

115. 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.

116. On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. The journal entry or entries that Courtland will make on October 1 is:

A. Choice A

B. Choice B

C. Choice C

D. Choice D

E. Choice E

117. On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. Carter pays the invoice on October 8, and takes the appropriate discount. The journal entry that Courtland makes on October 8 is:

A. Choice A

B. Choice B

C. Choice C

D. Choice D

E. Choice E

118. On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. On October 4, Carter 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 Courtland must make on October 4 is:

A. Choice A

B. Choice B

C. Choice C

D. Choice D

E. Choice E

119. On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. On October 4, Carter returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. Carter pays the invoice on October 8, and takes the appropriate discount. The journal entry that Courtland makes on October 8 is:

A. Choice A

B. Choice B

C. Choice C

D. Choice D

E. Choice E

120. Brig Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. Cost of goods sold equals: 

A. $150,000.

B. $450,000.

C. $800,000.

D. $350,000.

E. $200,000.