Question : 91. The primary difference between a periodic and perpetual inventory system : 1247101

 

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. Retained Earnings Statement D. 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. Retained Earnings Statement D. 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

$32,000

 

Purchases discounts

$960

Merchandise inventory September 1

5,700

 

Merchandise inventorySeptember 30

6,370

Sales returns and allowances

910

 

Sales

63,000

Purchases returns and allowances

1,200

 

Freight In

1,040

 

 

 

 

 

 A. 26,900B. 20,530C. 30,210D. 28,130

 

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

Purchases

$32,000

 

Purchases discounts

$960

Merchandise inventorySeptember 1

5,700

 

Merchandise inventorySeptember 30

6,370

Sales returns andallowances

910

 

Sales

63,000

Purchases returns andallowances

1,200

 

Freight In

1,040

 

 

 

 

 

 A. 34,870B. 31,880C. 27,460D. 62,090

 

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

Purchases

$32,000

 

Purchases discounts

$960

Merchandise inventorySeptember 1

5,700

 

Merchandise inventorySeptember 30

6,370

Sales returns andallowances

910

 

Sales

63,000

Purchases returns andallowances

1,200

 

Freight In

1,040

 

 

 

 

 

 A. 28,970B. 63,130C. 63,000D. 62,090

 

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

Purchases

$32,000

 

Purchases discounts

$960

Merchandise inventorySeptember 1

5,700

 

Merchandise inventorySeptember 30

6,370

Sales returns andallowances

910

 

Sales

63,000

Purchases returns andallowances

1,200

 

Freight In

1,040

 

 

 

 

 

 A. 35,540B. 36,580C. 37,700D. 34,500