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    Answers Chapter 5 Quiz.s13

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    Aurcus Jumskie
    This document contains a 10 question multiple choice quiz about accounting concepts covered in Chapter 5. The questions cover topics such as calculating net income, expense categories for merchandising companies, perpetual inventory systems, recording cost of goods sold, accounts used in a perpetual inventory system, calculating payment amounts and discounts on credit sales, determining gross profit from financial information, journal entries for sales returns, what multiple-step income statements show, and what is included in the sales revenues section of a retailer's income statement.

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    Answers Chapter 5 Quiz.s13

    Uploaded by

    Aurcus Jumskie
    138 views3 pages
    This document contains a 10 question multiple choice quiz about accounting concepts covered in Chapter 5. The questions cover topics such as calculating net income, expense categories for merchandising companies, perpetual inventory systems, recording cost of goods sold, accounts used in a perpetual inventory system, calculating payment amounts and discounts on credit sales, determining gross profit from financial information, journal entries for sales returns, what multiple-step income statements show, and what is included in the sales revenues section of a retailer's income statement.

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    This document contains a 10 question multiple choice quiz about accounting concepts covered in Chapter 5. The questions cover topics such as calculating net income, expense categories for merchandising companies, perpetual inventory systems, recording cost of goods sold, accounts used in a perpetual inventory system, calculating payment amounts and discounts on credit sales, determining gross profit from financial information, journal entries for sales returns, what multiple-step income statements show, and what is included in the sales revenues section of a retailer's income statement.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    138 views3 pages

    Answers Chapter 5 Quiz.s13

    Uploaded by

    Aurcus Jumskie
    This document contains a 10 question multiple choice quiz about accounting concepts covered in Chapter 5. The questions cover topics such as calculating net income, expense categories for merchandising companies, perpetual inventory systems, recording cost of goods sold, accounts used in a perpetual inventory system, calculating payment amounts and discounts on credit sales, determining gross profit from financial information, journal entries for sales returns, what multiple-step income statements show, and what is included in the sales revenues section of a retailer's income statement.

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    of 3

    Name: __________________________

    ACG 201
    Quiz Chapter 5
    Spring 2013

    Multiple Choice: Show all work for full credit.


    1. Net income will result if gross profit exceeds
    A) cost of goods sold.
    B) operating expenses.
    C) purchases.
    D) cost of goods sold plus operating expenses.

    2. Two categories of expenses in merchandising companies are


    A) cost of goods sold and financing expenses.
    B) operating expenses and financing expenses.
    C) cost of goods sold and operating expenses.
    D) sales and cost of goods sold.

    3. Under a perpetual inventory system


    A) accounting records continuously disclose the amount of inventory.
    B) increases in inventory resulting from purchases are debited to purchases.
    C) there is no need for a year-end physical count.
    D) the account purchase returns and allowances is credited when goods are returned to
    vendors.

    4. In a perpetual inventory system, cost of goods sold is recorded


    A) on a daily basis.
    B) on a monthly basis.
    C) on an annual basis.
    D) each time a sale occurs.

    5. Under the perpetual inventory system, which of the following accounts would not be
    used?
    A) Sales Revenue
    B) Purchases
    C) Cost of Goods Sold

    Page 1 of 3
    D) Inventory

    6. A credit sale of $1,600 is made on April 25, terms 2/10, net/30, on which a return of
    $100 is granted on April 28. What amount is received as payment in full on May 4?
    SHOW YOUR WORK
    A) $1,470
    B) $1,568
    C) $1,600
    D) $1,500
    ($1,600 – 100)*2% = $30 discount for early payment
    ($1,600- 100 [Return]) – 30 = $1,470 cash paid on May 4

    7. Financial information is presented below:


    Operating Expenses $ 21,000
    Sales Returns and Allowances 7,000
    Sales Discounts 3,000
    Sales Revenue 150,000
    Cost of Goods Sold 105,000
    Gross profit would be (SHOW YOUR WORK):
    A) $42,000.
    B) $35,000.
    C) $38,000.
    D) $45,000.
    Net Sales = ($150,000 – 7,000 – 3,000) = $140,000
    Gross Profit = Net Sales – COGS; $140,000 – 105,000 = $35,000

    8. The entry to record the return of goods from a customer would include a
    A) debit to Sales Revenue.
    B) credit to Sales Revenue.
    C) debit to Sales Returns and Allowances.
    D) credit to Sales Returns and Allowances.

    9. Multiple-step income statements show


    A) gross profit but not income from operations.
    B) neither gross profit nor income from operations.
    C) both income from operations and gross profit.
    D) income from operations but not gross profit.

    Page 2 of 3
    10. The sales revenues section of an income statement for a retailer would not include
    A) Sales discounts.
    B) Sales.
    C) Net sales.
    D) Cost of goods sold.

    Page 3 of 3

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