ACCT 201 PRACTICE TEST QUESTIONS
AND CORRECT ANSWERS
A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted
on June 16. The amount received as payment in full on June 23:
A. $700
B. $686
C. $685
D. $650 - Answer-B. $686
750-50=700
700*2%= 14
700-14=686
Which of the following accounts will normally appear in the ledger of a merchandising
company that uses a perpetual inventory system?
A. purchase
B. freight-out
C. Costs of Goods Sold
D. purchase discounts - Answer-C. COGS
The multi-step income statement for a merchandising company shows each of the
following features except:
A. gross profit
B. cost of goods sold
C. a sales section
D. an investing activities section - Answer-D. an investing activities section
If net sales are $400,000, cost of goods sold is $310,000, and operating expenses are
$60,000, what is the gross profit? - Answer-$340,000
A single-step income statement reports : - Answer-gross profit
What appears on both a single-step and a multiple-step income statement? - Answer-
Cost of goods sold
If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending
inventory is $50,000, cost of goods sold is: - Answer-$390,000
380,000+60,000-50,000= 390,000
AND CORRECT ANSWERS
A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted
on June 16. The amount received as payment in full on June 23:
A. $700
B. $686
C. $685
D. $650 - Answer-B. $686
750-50=700
700*2%= 14
700-14=686
Which of the following accounts will normally appear in the ledger of a merchandising
company that uses a perpetual inventory system?
A. purchase
B. freight-out
C. Costs of Goods Sold
D. purchase discounts - Answer-C. COGS
The multi-step income statement for a merchandising company shows each of the
following features except:
A. gross profit
B. cost of goods sold
C. a sales section
D. an investing activities section - Answer-D. an investing activities section
If net sales are $400,000, cost of goods sold is $310,000, and operating expenses are
$60,000, what is the gross profit? - Answer-$340,000
A single-step income statement reports : - Answer-gross profit
What appears on both a single-step and a multiple-step income statement? - Answer-
Cost of goods sold
If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending
inventory is $50,000, cost of goods sold is: - Answer-$390,000
380,000+60,000-50,000= 390,000
