Wiley Plus Exam 2 Questions with 100% Correct Answers 2024

Wiley Plus Exam 2 Questions with 100% Correct Answers 2024 t/f: A perpetual inventory system provides better control over inventories than does a periodic inventory system. - answertrue Which of the following items does not result in an entry to the Inventory account under a perpetual system? - answerPayment of freight costs for goods shipped to a customer Marsh, Inc. paid for freight costs on merchandise it shipped to a customer. In what account will Marsh record this cost in a perpetual inventory system? - answerFreight-out account defective merchandise returned by a customer does what - answerThe Sales Returns and Allowances account is debited true when recording the sale of goods for cash in a perpetual inventory system? - answerTwo 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. Gross profit - answerthe difference between net sales and cost of goods sold. Which of the following is classified in an income statement as a nonoperating activity? - answerInterest expense Which of the following is classified in an income statement as a nonoperating activity? - answerReceiving dividend revenue from an investment Which of the following would affect the gross profit rate if sales remain constant? - answerAn increase in cost of goods sold Which factor would not affect the gross profit rate? - answerAn increase in the cost of heating the store In a perpetual inventory system, which accounts will the seller credit when merchandise is returned by a customer? - answerAccounts Receivable and Cost of Goods Sold When is a physical inventory usually taken? - answerAt the end of the company's fiscal year