ACCT 201 Exam 2 2025/2026 Exam
Questions and Correct Answers | New
1
Update
contra revenue account - 🧠 ANSWER ✔✔an account that is offset against a
revenue account on the income statement
cost of goods sold - 🧠 ANSWER ✔✔the total cost of merchandise sold during the
period
FOB destination - 🧠 ANSWER ✔✔freight terms indicating that the seller places
the goods free on board to the buyer's place of business, and the seller pays the
freight
FOB shipping point - 🧠 ANSWER ✔✔freight terms indicating that the seller places
goods free on board the carrier, and the buyer pays the freight costs
gross profit - 🧠 ANSWER ✔✔the excess net sales over the cost of goods sold
gross profit rate - 🧠 ANSWER ✔✔gross profit expressed as a percentage, by
dividing the amount of gross profit by net sales
100% GUARANTEED PASS
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,( gross profit / net sales = GPR )
2
income from operations - 🧠 ANSWER ✔✔income from a company's principal
operating activity; determined by subtracting cost of goods sold and operating
expenses from net sales
multiple-step income statement - 🧠 ANSWER ✔✔an income statement that shows
several steps in determining net income
net sales - 🧠 ANSWER ✔✔sales revenue less sales returns and allowances and less
sales discounts
nonoperating activities - 🧠 ANSWER ✔✔various revenues, expenses, gains, and
losses that are unrelated to a company's main line of operations
operating expenses - 🧠 ANSWER ✔✔expenses incurred in the process of earning
sales revenue
other expenses and losses - 🧠 ANSWER ✔✔a nonoperating-activities section of
the income statement that shows expenses and losses unrelated to the company's
main line of operations
100% GUARANTEED PASS
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, other revenue and gains - 🧠 ANSWER ✔✔a nonoperating-activities section of the
income statement that shows revenues and gains unrelated to the company's main
3
line of operations
periodic inventory system - 🧠 ANSWER ✔✔an inventory system under which the
company does not keep detailed inventory records throughout the accounting
period but determines the cost of goods sold only at the end of an accounting
period
perpetual inventory system - 🧠 ANSWER ✔✔an inventory system under which the
company keeps detailed records of the cost of each inventory purchase and sale,
and the records continuously show the inventory that should be on hand
purchase allowance - 🧠 ANSWER ✔✔a deduction made to the selling price of
merchandise, granted by the seller so that the buyer will keep the merchandise
purchase discount - 🧠 ANSWER ✔✔a cash discount claimed by a buyer for prompt
payment of a balance due
purchase invoice - 🧠 ANSWER ✔✔a document that supports each credit purchase
purchase return - 🧠 ANSWER ✔✔a return of goods from the buyer to the seller for
a cash or credit refund
100% GUARANTEED PASS
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Correct Answers | New
1
Update
contra revenue account - 🧠 ANSWER ✔✔an account that is offset against a
revenue account on the income statement
cost of goods sold - 🧠 ANSWER ✔✔the total cost of merchandise sold during the
period
FOB destination - 🧠 ANSWER ✔✔freight terms indicating that the seller places
the goods free on board to the buyer's place of business, and the seller pays the
freight
FOB shipping point - 🧠 ANSWER ✔✔freight terms indicating that the seller places
goods free on board the carrier, and the buyer pays the freight costs
gross profit - 🧠 ANSWER ✔✔the excess net sales over the cost of goods sold
gross profit rate - 🧠 ANSWER ✔✔gross profit expressed as a percentage, by
dividing the amount of gross profit by net sales
100% GUARANTEED PASS
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,( gross profit / net sales = GPR )
2
income from operations - 🧠 ANSWER ✔✔income from a company's principal
operating activity; determined by subtracting cost of goods sold and operating
expenses from net sales
multiple-step income statement - 🧠 ANSWER ✔✔an income statement that shows
several steps in determining net income
net sales - 🧠 ANSWER ✔✔sales revenue less sales returns and allowances and less
sales discounts
nonoperating activities - 🧠 ANSWER ✔✔various revenues, expenses, gains, and
losses that are unrelated to a company's main line of operations
operating expenses - 🧠 ANSWER ✔✔expenses incurred in the process of earning
sales revenue
other expenses and losses - 🧠 ANSWER ✔✔a nonoperating-activities section of
the income statement that shows expenses and losses unrelated to the company's
main line of operations
100% GUARANTEED PASS
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, other revenue and gains - 🧠 ANSWER ✔✔a nonoperating-activities section of the
income statement that shows revenues and gains unrelated to the company's main
3
line of operations
periodic inventory system - 🧠 ANSWER ✔✔an inventory system under which the
company does not keep detailed inventory records throughout the accounting
period but determines the cost of goods sold only at the end of an accounting
period
perpetual inventory system - 🧠 ANSWER ✔✔an inventory system under which the
company keeps detailed records of the cost of each inventory purchase and sale,
and the records continuously show the inventory that should be on hand
purchase allowance - 🧠 ANSWER ✔✔a deduction made to the selling price of
merchandise, granted by the seller so that the buyer will keep the merchandise
purchase discount - 🧠 ANSWER ✔✔a cash discount claimed by a buyer for prompt
payment of a balance due
purchase invoice - 🧠 ANSWER ✔✔a document that supports each credit purchase
purchase return - 🧠 ANSWER ✔✔a return of goods from the buyer to the seller for
a cash or credit refund
100% GUARANTEED PASS
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
