Accounting Principles Prep Questions With Verified Answers
Accounting Principles Prep Questions With Verified Answers Which of the following expressions is incorrect? Sales revenue - cost of goods sold - Operating expenses = Net income Operating expenses - Cost of goods sold = Gross profit Net income + Operating expenses = Gross profit Gross profit - Operating expenses = Net income - ANSWER Operating expenses - Cost of goods sold = Gross profit Net income - ANSWER gross profit - operating expenses or Sales revenue - cost of goods sold - Operating expenses Gross profit - ANSWER Net income + Operating expenses = Which of the following items will not result in an adjustment to the inventory account balance under a perpetual system? 1) A return of merchandise inventory to the supplier 2) A purchase of merchandise 3) Payment of freight costs for goods received from a supplier 4) Payment of freight costs for goods shipped to a customer - ANSWER 4) Payment of freight costs for goods shipped to a customer Marigold Corp. sells merchandise on account for $1300 to Sheffield Company with credit terms of 2/10, n/30. Sheffield Company returns $150 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? $1124 $1076 $1127 $1075 - ANSWER $1127
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