ACC 290 Week 3 Practice Quiz
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The operating cycle of a merchandising company is ordinarily shorter than that of a service company.
The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm.
|has fewer steps than|
|the same as|
Which statement is true when recording the sale of goods for cash in a perpetual inventory system?
|Only one journal entry is necessary. It will record the receipt of cash and sales revenue.|
|Two journal entries are necessary: one to record the receipt of cash and reduction of inventory, and one to record the the cost of goods sold and sales revenue.|
|Two journal entries are necessary: one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and to reduce inventory.|
|Only one journal entry is necessary. It will record cost of goods sold and reduce of inventory.|
Net income is $15,000, operating expenses are $20,000, and net sales total $75,000. How much is cost of goods sold?
Which one of the following will result in gross profit?
|Sales revenue less cost of goods sold|
|Operating expenses less cost of goods sold|
|Operating expenses less net income|
|Sales revenue less operating expenses|
Under what system is cost of goods sold determined at the end of an accounting period?
|Double entry inventory system|
|Single entry inventory system|
|Perpetual inventory system|
|Periodic inventory system|
Net income is $15,000, operating expenses are $20,000, net sales total $75,000, and sales revenues total $95,000. How much is the profit margin?
In a periodic inventory system, when is the cost of the merchandise sold determined?
|At the time of the sale|
|At the end of the period|
|Periodically during the period|
|Either at time of sale, end of period or periodically during the period|
Waymon Co. has net sales of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit?
Masie Ascot believes revenues from credit sales may be recorded before they are collected in cash. Do you agree? Explain.