ACC 255 - EXAM 2 (LATEST UPDATE) REAL QUESTIONS
AND VERIFIED ANSWERS |100% CORRECT | ALREADY
GRADED A
Earnings per share is: Ans✓✓✓a measure of net income earned on each
share of common stock.
Working capital is: Ans✓✓✓current assets less current liabilities.
All of the following are current assets except:
accounts receivable
cash
patents
marketable securities Ans✓✓✓patents
The current ratio is a: Ans✓✓✓liquidity ratio.
Under the perpetual inventory system, purchases of merchandise for sale
are recorded inan account called: Ans✓✓✓Inventory.
A purchaser, dissatisfied with merchandise received, may return the
goods to the seller for credit. This transaction is known, by the seller, as
a: Ans✓✓✓Sales Return.
, In a periodic inventory system, the cost of goods sold is determined:
Ans✓✓✓At the end of the accounting period.
Freight costs incurred by the seller on outgoing merchandise are
considered: Ans✓✓✓Operating expenses to the seller
If a sales invoice shows credit terms of 2/10, n/30, the discount period is:
Ans✓✓✓10 days.
The revenue recognition principle requires that sales revenues be
recognized: Ans✓✓✓When the goods are transferred from the seller to
the buyer.
Sales Returns and allowances and sales discounts are: Ans✓✓✓Contra
revenue accounts
The income statement of a merchandising comany contain the following
unique features: Ans✓✓✓Sales revenue, cost of goods sold, and gross
profit.
What is: A detailed inventory system in which the cost of each
invewntory item is maintained and the rcords continuously show the
inventory that should be on hand. Ans✓✓✓Perpetual Inventory.
AND VERIFIED ANSWERS |100% CORRECT | ALREADY
GRADED A
Earnings per share is: Ans✓✓✓a measure of net income earned on each
share of common stock.
Working capital is: Ans✓✓✓current assets less current liabilities.
All of the following are current assets except:
accounts receivable
cash
patents
marketable securities Ans✓✓✓patents
The current ratio is a: Ans✓✓✓liquidity ratio.
Under the perpetual inventory system, purchases of merchandise for sale
are recorded inan account called: Ans✓✓✓Inventory.
A purchaser, dissatisfied with merchandise received, may return the
goods to the seller for credit. This transaction is known, by the seller, as
a: Ans✓✓✓Sales Return.
, In a periodic inventory system, the cost of goods sold is determined:
Ans✓✓✓At the end of the accounting period.
Freight costs incurred by the seller on outgoing merchandise are
considered: Ans✓✓✓Operating expenses to the seller
If a sales invoice shows credit terms of 2/10, n/30, the discount period is:
Ans✓✓✓10 days.
The revenue recognition principle requires that sales revenues be
recognized: Ans✓✓✓When the goods are transferred from the seller to
the buyer.
Sales Returns and allowances and sales discounts are: Ans✓✓✓Contra
revenue accounts
The income statement of a merchandising comany contain the following
unique features: Ans✓✓✓Sales revenue, cost of goods sold, and gross
profit.
What is: A detailed inventory system in which the cost of each
invewntory item is maintained and the rcords continuously show the
inventory that should be on hand. Ans✓✓✓Perpetual Inventory.
