ENT 3451 Exam 2
Study online at https://quizlet.com/_c2nb1m
1. 1. What is NOT correct regarding the perpetual inven- B
tory system?
A) It's a computerized program that keeps up with
items purchased, items sold and items in ending in-
ventory.
B) It requires a weekly physical count to determine
inventory on hand.
C) It requires a yearly physical count as a check on the
perpetual inventory system.
D) The merchandise inventory account is used to track
the goods purchased for resale.
2. 2. Cost of Goods Sold (COGS) account is used by a B
Merchandiser to report what amount and on what
financial statement?
A) Asset of Cost of Goods purchased for resale on the
Balance Sheet
B) Expense reporting Cost of Merchandise Inventory
that was sold on the Inc Stmt
C)Liability to record amounts due for Goods purchased
to resale on the Balance Sheet
D)Revenue to record cost of goods sold on the Income
Stmt
3. 3. Merchandise Inventory account is what? C
A) Asset account to record Cost of Goods sold.
B)Asset account to record Merchandise for resale, plus
Office supplies and Equipment.
C)Asset account to only record the Merchandise Inven-
tory for resale.
D) Asset account to track amount due on Merchandise
inventory purchased for resale.
, ENT 3451 Exam 2
Study online at https://quizlet.com/_c2nb1m
4. 4. Gross Profit is the term used to report what? D
A) Cost of Goods sold plus Net Sales Revenue
B) Amount of Merchandise Inventory on hand avail-
able for resale
C)Sales Revenue less the discount offered customers.
D)Net Sales Revenue less Cost of Goods Sold.
5. 5. BG, Inc purchased $20,000 of inventory on account B
on July12 with terms 2/10, n/30. BG Inc paid $250 for
freight bill on July 15. They returned $2000 of inventory
on July 17. They paid amount owed on July 21. What is
the net cost of inventory purchased?
A) $18,000
B)$17,890
C)$18,610
D)$17,640
6. 6. BG, Inc purchased $20,000 of inventory on account A
on July12 with terms 2/10, n/30. BG Inc paid $250 for
freight bill on July 15. They returned $2000 of inventory
on July 17. They paid amount owed on July 21. What is
included in the JE to record the return?
A) DR Accts Payable; CR Merch Inventory
B)CR Acct Payable; DR Merch Inventory
C)DR Accts Payable; CR Cash
D)DR Cash; CR Merchandise Inventory
7. 7. BG, Inc purchased $20,000 of inventory on account C
on July12 with terms 2/10, n/30. BG Inc paid $250 for
freight bill on July 15. They returned $2000 of inventory
on July 17. They paid amount owed on July 21. What is
included in the JE to record the payment of the freight
Study online at https://quizlet.com/_c2nb1m
1. 1. What is NOT correct regarding the perpetual inven- B
tory system?
A) It's a computerized program that keeps up with
items purchased, items sold and items in ending in-
ventory.
B) It requires a weekly physical count to determine
inventory on hand.
C) It requires a yearly physical count as a check on the
perpetual inventory system.
D) The merchandise inventory account is used to track
the goods purchased for resale.
2. 2. Cost of Goods Sold (COGS) account is used by a B
Merchandiser to report what amount and on what
financial statement?
A) Asset of Cost of Goods purchased for resale on the
Balance Sheet
B) Expense reporting Cost of Merchandise Inventory
that was sold on the Inc Stmt
C)Liability to record amounts due for Goods purchased
to resale on the Balance Sheet
D)Revenue to record cost of goods sold on the Income
Stmt
3. 3. Merchandise Inventory account is what? C
A) Asset account to record Cost of Goods sold.
B)Asset account to record Merchandise for resale, plus
Office supplies and Equipment.
C)Asset account to only record the Merchandise Inven-
tory for resale.
D) Asset account to track amount due on Merchandise
inventory purchased for resale.
, ENT 3451 Exam 2
Study online at https://quizlet.com/_c2nb1m
4. 4. Gross Profit is the term used to report what? D
A) Cost of Goods sold plus Net Sales Revenue
B) Amount of Merchandise Inventory on hand avail-
able for resale
C)Sales Revenue less the discount offered customers.
D)Net Sales Revenue less Cost of Goods Sold.
5. 5. BG, Inc purchased $20,000 of inventory on account B
on July12 with terms 2/10, n/30. BG Inc paid $250 for
freight bill on July 15. They returned $2000 of inventory
on July 17. They paid amount owed on July 21. What is
the net cost of inventory purchased?
A) $18,000
B)$17,890
C)$18,610
D)$17,640
6. 6. BG, Inc purchased $20,000 of inventory on account A
on July12 with terms 2/10, n/30. BG Inc paid $250 for
freight bill on July 15. They returned $2000 of inventory
on July 17. They paid amount owed on July 21. What is
included in the JE to record the return?
A) DR Accts Payable; CR Merch Inventory
B)CR Acct Payable; DR Merch Inventory
C)DR Accts Payable; CR Cash
D)DR Cash; CR Merchandise Inventory
7. 7. BG, Inc purchased $20,000 of inventory on account C
on July12 with terms 2/10, n/30. BG Inc paid $250 for
freight bill on July 15. They returned $2000 of inventory
on July 17. They paid amount owed on July 21. What is
included in the JE to record the payment of the freight
