CH 4 CENGAGE Exam Questions and
Answers (Most Recent Version, Complete
Study Material)
The difference between the balance sheets of a service
company and a retail company is that the retail company's
balance sheet includes... - Correct Answers ✅Inventory
Cost of goods sold is reported as a(n) - Correct Answers
✅Expense
Determine sales for the month using the following
information. At month-end, cost of goods sold is $190,350,
and gross profit is $168,990. - Correct Answers ✅$359,340
Sales − Cost of Goods Sold = Gross Profit = $359,340 −
$190,350 = $168,990
Credit terms are terms for when... - Correct Answers ✅the
payments for merchandise are to be made.
Each subsidiary ledger is represented in the general ledger
with a summarizing account called a(n) - Correct Answers
✅controlling account
Banks Company sold merchandise on account for $35,000
with terms 2/10, n/30. The cost of goods sold was $27,800. If
the invoice is paid within the discount period, what is the
, CH 4 CENGAGE Exam Questions and
Answers (Most Recent Version, Complete
Study Material)
amount of cash received by Banks Company? - Correct
Answers ✅$34,300
$35,000 − ($35,000 × 2%) = $34,300
Which of the following accounts would be found on the
adjusted trial balance of a retail business but not on the
adjusted trial balance of a service business? - Correct
Answers ✅Estimated Returns Inventory
At the end of the year, assume the balance of Inventory is
$110,225 and physical inventory on hand is $107,820. The
adjusting entry to journalize shrinkage will be a... - Correct
Answers ✅$2,405 debit to Cost of Goods Sold and a $2,405
credit to Inventory.
Shrinkage is computed by deducting physical inventory from
inventory ($110,225 − $107,820 = $2,405). Cost of Goods
Sold is debited, and Inventory is credited
Which of the following accounts used in a retail business
would be reported as a current asset on the balance sheet? -
Correct Answers ✅Estimated Returns Inventory
Answers (Most Recent Version, Complete
Study Material)
The difference between the balance sheets of a service
company and a retail company is that the retail company's
balance sheet includes... - Correct Answers ✅Inventory
Cost of goods sold is reported as a(n) - Correct Answers
✅Expense
Determine sales for the month using the following
information. At month-end, cost of goods sold is $190,350,
and gross profit is $168,990. - Correct Answers ✅$359,340
Sales − Cost of Goods Sold = Gross Profit = $359,340 −
$190,350 = $168,990
Credit terms are terms for when... - Correct Answers ✅the
payments for merchandise are to be made.
Each subsidiary ledger is represented in the general ledger
with a summarizing account called a(n) - Correct Answers
✅controlling account
Banks Company sold merchandise on account for $35,000
with terms 2/10, n/30. The cost of goods sold was $27,800. If
the invoice is paid within the discount period, what is the
, CH 4 CENGAGE Exam Questions and
Answers (Most Recent Version, Complete
Study Material)
amount of cash received by Banks Company? - Correct
Answers ✅$34,300
$35,000 − ($35,000 × 2%) = $34,300
Which of the following accounts would be found on the
adjusted trial balance of a retail business but not on the
adjusted trial balance of a service business? - Correct
Answers ✅Estimated Returns Inventory
At the end of the year, assume the balance of Inventory is
$110,225 and physical inventory on hand is $107,820. The
adjusting entry to journalize shrinkage will be a... - Correct
Answers ✅$2,405 debit to Cost of Goods Sold and a $2,405
credit to Inventory.
Shrinkage is computed by deducting physical inventory from
inventory ($110,225 − $107,820 = $2,405). Cost of Goods
Sold is debited, and Inventory is credited
Which of the following accounts used in a retail business
would be reported as a current asset on the balance sheet? -
Correct Answers ✅Estimated Returns Inventory
