ChapterracticeMaterials.docx

1、ChapterracticeMaterialsChapter 6Accounting for Merchandising BusinessesMULTIPLE CHOICE 1. Which one of the following is not a difference between a retail business and a service businessa.in what is soldb.the inclusion of gross profit in the income statementc.accounting equationd.merchandise inventor

2、y included in the balance sheetANS: C DIF: Moderate OBJ: 06-01NAT: AACSB Analytic | AICPA BB-Industry 2. Net income plus operating expenses is equal to a.cost of goods soldb.cost of goods available for salesd.gross profitANS: D DIF: Easy OBJ: 06-01NAT: AACSB Analytic | AICPA FN-Measurement 3. Gener

3、ally, the revenue account for a merchandising business is entitled a.Salesb.Net Salesc.Gross Salesd.Gross ProfitANS: A DIF: Easy OBJ: 06-01NAT: AACSB Analytic | AICPA FN-Measurement 4. What is the term applied to the excess of net revenue from sales over the cost of merchandise solda.gross profitb.i

4、ncome from incomed.gross salesANS: A DIF: Easy OBJ: 06-01NAT: AACSB Analytic | AICPA FN-Measurement 5. The term inventory indicates a.merchandise held for sale in the normal course of?businessb.materials in the process of production or held for?productionc.suppliesd.both (a) and (b)ANS: D DIF: Easy

5、 OBJ: 06-01NAT: AACSB Analytic | AICPA FN-Measurement 6. A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $4,000; Transportation-In, $450; Purchases, $12,000; Purchases Returns and Allowances, $2,300; Purchases Disc

6、ounts, $220. The cost of merchandise purchased is equal to a.$13,930b.$9,930c.$9,489d.$14520ANS: B DIF: Difficult OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 7. A company, using the periodic inventory system, has merchandise inventory costing $140 on hand at the beginning of the period. Dur

7、ing the period, merchandise costing $400 is purchased. At year-end, merchandise inventory costing $180 is on hand. The cost of merchandise sold for the year is a.$720b.$550c.$360d.$140ANS: C DIF: Difficult OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 8. Expenses that are incurred directly or

8、 entirely in connection with the sale of merchandise are classified as a.selling expensesb.general expensesc.other expensesd.administrative expensesANS: A DIF: Easy OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 9. Office salaries, depreciation of office equipment, and office supplies are exam

9、ples of what type of expensea.selling expenseb.miscellaneous expensec.administrative expensed.other expenseANS: C DIF: Easy OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 10. The form of income statement that derives its name from the fact that the total of all expenses is deducted from the to

10、tal of all revenues is called a a.multiple-step statementb.revenue statementc.report-form statementd.single-step statementANS: D DIF: Easy OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 11. Multiple-step income statements show a.gross profit but not income from operationsb.neither gross profit

11、 nor income from operationsc.both gross profit and income from operationsd.income from operations but not gross profitANS: C DIF: Moderate OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 12. When the three sections of a balance sheet are presented on a page in a downward sequence, it is called

12、the a.account parative formc.horizontal formd.report formANS: D DIF: Easy OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 13. The statement of owners equity shows a.only net income, beginning and ending capitalb.only total assets, beginning and ending capitalc.only net income, beginning capital

13、, and withdrawalsd.all the changes in the owners capital as a result of net income, net loss, additional investments, and withdrawalsANS: D DIF: Moderate OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 14. Merchandise inventory is classified on the balance sheet as a a.Current Liabilityb.Curren

14、t Assetc.Long-Term Assetd.Long-Term LiabilityANS: B DIF: Easy OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 15. Which account is not classified as a selling expensea.Sales Salariesb.Transportation-Outc.Sales Discountsd.Advertising ExpenseANS: C DIF: Easy OBJ: 06-02NAT: AACSB Analytic | AICPA

15、FN-Measurement 16. The primary difference between a periodic and perpetual inventory system is that a a.periodic system determines the inventory on hand only at the end of the accounting periodb.periodic system keeps a record showing the inventory on hand at all timesc.periodic system provides an ea

16、sy means to determine inventory shrinkaged.periodic system records the cost of the sale on the date the sale is madeANS: A DIF: Moderate OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 17. The inventory system employing accounting records that continuously disclose the amount of inventory is ca

17、lled a.Retailb.Periodicc.Physicald.PerpetualANS: D DIF: Easy OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 18. When the perpetual inventory system is used, the inventory sold is shown on the income statement as a.cost of merchandise soldb.Purchasesc.purchases returns and purchasesANS: A DIF:

18、 Easy OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 19. When comparing a retail business to a service business, the financial statement that changes the most is the a.Balance Sheetb.Income Statementc.Statement of Owners Equityd.Statement of Cash FlowANS: B DIF: Moderate OBJ: 06-02NAT: AACSB A

19、nalytic | AICPA FN-Measurement 20. When comparing a retail business to a service business, the financial statement that changes the least is the a.Balance Sheetb.Income Statementc.Statement of Owners Equityd.Statement of Cash FlowANS: C DIF: Moderate OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurem

20、ent 21. Gross profit is equal to:a.sales plus (sales discounts and sales returns and allowances) plus cost of goods soldb.sales plus sales returns and allowances less sales discounts less cost of goods soldc.sales plus sales discounts less sales returns and allowances less cost of goods soldd.sales

21、less (sales discounts and sales returns and allowances) less cost of goods soldANS: D DIF: Moderate OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 22. Using the following information, what is the amount of cost of merchandise soldPurchases$28,000Purchases discounts$800Merchandise inventory Apr

22、il 16,500Merchandise inventoryApril 307,800Sales returns and allowances750Sales57,000Purchases returns and allowances1,000Transportation In880a.25,780b.23,270c.31,220d.24,020ANS: A DIF: Difficult OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 23. Using the following information, what is the am

23、ount of gross profitPurchases$28,000Purchases discounts$800Merchandise inventoryApril 16,500Merchandise inventoryApril 307,800Sales returns andallowances750Sales57,000Purchases returns andallowances1,000Transportation In880a.31,970b.30,470c.25,780d.56,250ANS: B DIF: Difficult OBJ: 06-02NAT: AACSB An

24、alytic | AICPA FN-Measurement 24. Using the following information, what is the amount of net salesPurchases$28,000Purchases discounts$800Merchandise inventoryApril 16,500Merchandise inventoryApril 307,800Sales returns andallowances750Sales57,000Purchases returns andallowances1,000Transportation In88

25、0a.25,780b.57,000c.57,750d.56,250ANS: D DIF: Moderate OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 25. Using the following information, what is the amount of merchandise available for salePurchases$28,000Purchases discounts$800Merchandise inventoryApril 16,500Merchandise inventoryApril 307,8

26、00Sales returns andallowances750Sales57,000Purchases returns andallowances1,000Transportation In880a.33,580b.30,470c.25,780d.34,500ANS: A DIF: Difficult OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 26. Where are selling and administrative expenses found on the multi-step income statementa.be

27、fore gross profitb.after sales and before gross profitc.after net income before expensesd.after gross profitANS: D DIF: Moderate OBJ: 06-02NAT: AACSB Analytic | AICPA FN-Measurement 27. Silver Co. sold merchandise to Bronze Co. on account, $23,000, terms 2/15, net 45. The cost of the merchandise sol

28、d is $18,500. Silver Co. issued a credit memorandum for $2,500 for merchandise returned that originally cost $1,900. The Bronze Co. paid the invoice within the discount period. What is amount of net sales from the above transactionsa.$20,090b.$20,500c.$3,490d.$23,000ANS: A DIF: Difficult OBJ: 06-02N

29、AT: AACSB Analytic | AICPA FN-Measurement 28. Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a a.debit to Salesb.debit to Merchandise Inventoryc.credit to Merchandise Inventoryd.credit to Accounts ReceivableANS: C DIF: Easy OBJ: 06-03NAT: AACSB Analytic | AICPA FN-Measurement 29. Which of the following accounts has a normal debit balancea.Accounts Payableb.Sales Returns and Allowancesc.Salesd.Interest RevenueANS: B DIF: Moderate OBJ: 06-03NAT: AACSB Analytic | AICPA FN-Measurement 30. Merchandi