WILEY PLUS CH. 5-9 QUIZ QUESTIONS
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100%
CORRECT!!!
Which of the following activities is not a component of the operating cycle?
Purchase of merchandise
Sale of merchandise
Collection of cash from merchandise sales
Payment of employees' salaries - ANSWER✔✔ Payment of employees' salaries
Gross profit equals the difference between
sales revenue and cost of goods sold plus operating expenses.
net income and operating expenses.
sales revenue and cost of goods sold.
sales revenue and operating expenses. - ANSWER✔✔ sales revenue and cost of
goods sold.
Generally, the revenue account for a merchandising enterprise is called
Net Sales.
Gross Profit.
Investment Income.
Sales Revenue or Sales. - ANSWER✔✔ Sales Revenue or Sales.
If a purchaser using a perpetual inventory system pays the transportation costs for
goods purchased, then the
, Inventory account is not affected.
Delivery Expense account is increased.
Freight-out account is increased.
Inventory account is increased. - ANSWER✔✔ Inventory account is increased.
Freight costs incurred by a seller on merchandise sold to customers will cause an
increase
to the cost of goods sold of the seller.
in operating expenses for the seller.
in the selling expenses of the buyer.
to a contra-revenue account of the seller. - ANSWER✔✔ in operating expenses for
the seller.
Pharoah Company purchased merchandise inventory with an invoice price of
$11400 and credit terms of 2/10, n/30. What is the net cost of the goods if Pharoah
Company pays within the discount period?
$10488
$11400
$10260
$11172 - ANSWER✔✔ $11172
Nash's,LLC's Market recorded the following events involving a recent purchase of
inventory:Received goods for $85000, terms 2/7, n/30.Returned $1200 of the
shipment for credit.Paid $300 freight on the shipment.Paid the invoice within the
discount period.As a result of these events, the company's inventory
increased by $82418.
increased by $84100.
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100%
CORRECT!!!
Which of the following activities is not a component of the operating cycle?
Purchase of merchandise
Sale of merchandise
Collection of cash from merchandise sales
Payment of employees' salaries - ANSWER✔✔ Payment of employees' salaries
Gross profit equals the difference between
sales revenue and cost of goods sold plus operating expenses.
net income and operating expenses.
sales revenue and cost of goods sold.
sales revenue and operating expenses. - ANSWER✔✔ sales revenue and cost of
goods sold.
Generally, the revenue account for a merchandising enterprise is called
Net Sales.
Gross Profit.
Investment Income.
Sales Revenue or Sales. - ANSWER✔✔ Sales Revenue or Sales.
If a purchaser using a perpetual inventory system pays the transportation costs for
goods purchased, then the
, Inventory account is not affected.
Delivery Expense account is increased.
Freight-out account is increased.
Inventory account is increased. - ANSWER✔✔ Inventory account is increased.
Freight costs incurred by a seller on merchandise sold to customers will cause an
increase
to the cost of goods sold of the seller.
in operating expenses for the seller.
in the selling expenses of the buyer.
to a contra-revenue account of the seller. - ANSWER✔✔ in operating expenses for
the seller.
Pharoah Company purchased merchandise inventory with an invoice price of
$11400 and credit terms of 2/10, n/30. What is the net cost of the goods if Pharoah
Company pays within the discount period?
$10488
$11400
$10260
$11172 - ANSWER✔✔ $11172
Nash's,LLC's Market recorded the following events involving a recent purchase of
inventory:Received goods for $85000, terms 2/7, n/30.Returned $1200 of the
shipment for credit.Paid $300 freight on the shipment.Paid the invoice within the
discount period.As a result of these events, the company's inventory
increased by $82418.
increased by $84100.
