ACCS Review Exam with Accurate Answers

ACCS Review Exam with Accurate
Answers
Two categories of expenses in merchandising companies are


operating expenses and financing expenses.




cost of goods sold and financing expenses.




cost of goods sold and operating expenses.




other expenses and cost of goods sold. - ✔✔cost of goods sold and operating expenses.


The operating cycle of a merchandising company is




about the same as that of a service company.




always one year in length.




ordinarily longer than that of a service company.

, ordinarily shorter than that of a service company. - ✔✔ordinarily longer than that of a service
company.


Which of the following expressions is incorrect?


Gross profit - Operating expenses = Net income




Sales revenue - cost of goods sold - Operating expenses = Net income




Operating expenses - Cost of goods sold = Gross profit




Net income + Operating expenses = Gross profit - ✔✔Operating expenses - Cost of goods sold =
Gross profit


The primary difference between a periodic and perpetual inventory system is that a periodic
system




determines the inventory on hand only at the end of the accounting period.




keeps a record showing the inventory on hand at all time.