ACCT 2010 TEST 3 questions well
answered to pass
Which statement is true?
A.
The Sales account is used to record only sales on account.
B.
Gross profit is the excess of sales revenue over cost of goods sold.
C.
Purchase returns and allowances increase the net amount of purchases.
D.
A service company purchases products from suppliers and then sells them. - correct answer ✔✔B
Cost of goods sold will appear on which financial statement?
A.
statement of retained earnings
B.
balance sheet
C.
income statement
D.
statement of cash flows - correct answer ✔✔C
How is inventory classified in the financial statements?
A.
As a liability
B.
,As an asset
C.
As a revenue
D.
As an expense
E.
As a contra account to Cost of Goods Sold - correct answer ✔✔B
Seaside Software began January with $3,400 of merchandise inventory. During January, Seaside made
the following entries for its inventory transactions:
DEBIT: Inventory
6,700
CREDIT:Accounts Payable
6,700
DEBIT: Accounts Receivable
7,400
CREDIT: Sales Revenue
7,400
DEBIT: Cost of Goods Sold
5,600
CREDIT: Inventory
5,600
How much was Seaside's inventory at the end of January?
A.
$4,500
B.
, $10,100
C.
$6,700
D.
$ - 0 - - correct answer ✔✔A
When does the cost of inventory become an expense?
A.
When inventory is purchased from the supplier
B.
When inventory is delivered to a customer
C.
When cash is collected from the customer
D.
When payment is made to the supplier - correct answer ✔✔B
Use the following data of Stingray Sales, Inc.:
Units UC TC
Beginning inventory - 12 - 3 - 36
Purchase on Apr 25 - 41 - 6 - 246
Purchase on Nov 16 - 17 - 7 - 119
SALES - 50 - ? - ?
Stingray Sales uses a FIFO inventory system. Cost of goods sold for the period is
A.
answered to pass
Which statement is true?
A.
The Sales account is used to record only sales on account.
B.
Gross profit is the excess of sales revenue over cost of goods sold.
C.
Purchase returns and allowances increase the net amount of purchases.
D.
A service company purchases products from suppliers and then sells them. - correct answer ✔✔B
Cost of goods sold will appear on which financial statement?
A.
statement of retained earnings
B.
balance sheet
C.
income statement
D.
statement of cash flows - correct answer ✔✔C
How is inventory classified in the financial statements?
A.
As a liability
B.
,As an asset
C.
As a revenue
D.
As an expense
E.
As a contra account to Cost of Goods Sold - correct answer ✔✔B
Seaside Software began January with $3,400 of merchandise inventory. During January, Seaside made
the following entries for its inventory transactions:
DEBIT: Inventory
6,700
CREDIT:Accounts Payable
6,700
DEBIT: Accounts Receivable
7,400
CREDIT: Sales Revenue
7,400
DEBIT: Cost of Goods Sold
5,600
CREDIT: Inventory
5,600
How much was Seaside's inventory at the end of January?
A.
$4,500
B.
, $10,100
C.
$6,700
D.
$ - 0 - - correct answer ✔✔A
When does the cost of inventory become an expense?
A.
When inventory is purchased from the supplier
B.
When inventory is delivered to a customer
C.
When cash is collected from the customer
D.
When payment is made to the supplier - correct answer ✔✔B
Use the following data of Stingray Sales, Inc.:
Units UC TC
Beginning inventory - 12 - 3 - 36
Purchase on Apr 25 - 41 - 6 - 246
Purchase on Nov 16 - 17 - 7 - 119
SALES - 50 - ? - ?
Stingray Sales uses a FIFO inventory system. Cost of goods sold for the period is
A.
