Inventory is classified on the balance sheet as a
What is the term applied to the excess of sales over the cost of goods sold?
The inventory system employing accounting records that continuously disclose the amount of inventory is called
Calculate the gross profit for Jefferson Company based on the following:
|Cost of goods sold
Calculate income from operations for Jonas Company based on the following data:
|Cost of goods sold
The primary difference between the periodic and perpetual inventory systems is that a
a.periodic system keeps a record showing the inventory on hand at all times
b.periodic system determines the inventory on hand only at the end of the accounting period
c.periodic system records the cost of the sale on the date the sale is made
d.periodic system provides an easy means to determine inventory shrinkage
In credit terms of 3/15, n/45, the "3" represents the
a.percent of the cash discount
b.full amount of the invoice
c.number of days when the entire amount is due
d.number of days in the discount period
Which of the following accounts has a normal credit balance?
Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a
a.debit to Inventory
b.debit to Accounts Payable
c.credit to Sales
d.credit to Inventory
Which of the following accounts usually has a debit balance?
d.Sales Tax Payable
If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are
c.FOB shipping point
When goods are shipped FOB destination and the seller pays the freight charges, the buyer
a.does not take a discount
b.journalizes a reduction for the cost of the merchandise
c.makes no journal entry for the freight
d.journalizes a reimbursement to the seller
When the perpetual inventory system is used, the inventory sold is debited to
b.Cost of Goods Sold
Generally, the revenue account for a merchandising business is entitled
|Option C Currrent assets
|Explanations: Inventory is a current asset, so it is classified in the current assets section
|on the balance sheet.
|Option B Gross profit
|Explanations: If sales is higher than cost of goods sold then the difference is known as
|Option C Perpetual
|Explanations: In a perpetual inventory method, the cost of goods sold and balance inventory
|are recorded on a continual basis.
|Option D $226,000
|Less: Cost of goods sold
Get Answers For Free
Most questions answered within 1 hours.