FAC 1502 FINANCIAL ACCOUNTING ELEMENTARY CALCULATIONS EXAM REVIEW SOLVED

FAC 1502 FINANCIAL ACCOUNTING ELEMENTARY CALCULATIONS EXAM REVIEW SOLVED
QUESTIONS COMPLETE ANSWERS GRADED A PLUS




Question:
● what type of accounts are sales discounts and sales returns and allowances?

Answer:
contra revenue accounts



Question:
● gross profit calculation

Answer:
net sales - COGS



Question:
● COGS calculation

Answer:
beginning inventory + purchases - ending inventory



Question:
● Gross profit percentage calculation

Answer:
(gross profit / net sales) * 100



Question:
● Goods available for sale calculation

, Answer:
1. beginning inventory + purchases 2. COGS + ending inventory



Question:
● net income calculation

Answer:
gross profit - expenses



Question:
● inventory turnover ratio calculation

Answer:
COGS / average inventory (higher is better) rate of sell



Question:
● average inventory calculation

Answer:
(BI + EI) / 2



Question:
● days to sell calculation

Answer:
365 / inventory turnover ratio (lower is better) age of inventory



Question:
● gross profit margin calculation

Answer: