Reference no: EM131585017

Question 1: Which of the following is not a difference between a retail business and a service company?

In what is sold

The inclusion of the gross profit in the statement of income and expenses

Accounting equation

Inventory of goods included in the statement of situation

Question 2: Net income plus operating expenses is equal to

Cost of merchandise sold

Cost of goods available for sale

Sales

gross profit

Question 3: What is the term applied to the excess of net sales income over the cost of merchandise sold?

gross profit

Operating income

net income gross sales

Question 4: The inventory system is called with continuous accounting records for each transaction affecting the inventory

Retail

Newspapers

physical

perpetual

Question 5: Calculates Alpha business operations revenues based on the following data:

Sales	$764.000
Operating Expenses	52.500
Cost of goods sold	538.000

$ 485,500

$ 711,500

$ 173,500

$ 226,000

Question 6: Gross profit is equal to

Sales and cost of merchandise sold

Sales plus selling expenses

Sales minus selling expenses

Sales minus cost of goods sold

Question 7: When comparing a retail business to a service company, the one that most changes from the financial statements is:

Status

Statement of income and expenses

Equity status of the owner

Statement of cash flows

Question 8: Calculates the net profit for the Beta Company based on the following:

Sales	$764.000
Selling expenses	42.500
Cost of goods sold	538.000

$ 495,500

$ 183,500

$ 721,500

$ 226,000

Question 9: The Charlie company sold merchandise to the Delta company on credit, $ 25,500, 2/15 terms, net 45. Delta paid the invoice within the discount period. What is the amount of sales from previous operations?

$ 25,500

$ 26,010

$ 24,990

$ 16,000

Question 10: The main difference between a periodic and perpetual inventory system is that a ...

Periodic system determines the inventory available only at the end of the accounting period.

Periodic system maintains a record showing the inventory available at all times.

Periodic system provides an easy means to determine inventory shrinkage.

Periodic system records the cost of the sale at the date of sale.

Question 11: Using a perpetual inventory system, the entry to record the sale of merchandise on credit includes a ...

Debt to sales.

Debit to inventory of goods.

Credit to the inventory of goods.

Credit to accounts receivable.

Question 12: Which of the following accounts has a normal debit balance?

Debts to pay

Merchandise inventory

Customer Service

Interest income

Question 13: Using a perpetual inventory system, the registry entry for the return of a customer of the merchandise sold on credit includes a ...

Credit to accounts payable.

Debit to inventory of goods.

Credit to the inventory of goods.

Debit to cash.

Question 14: It prepares the statement of income and expenses of a stage of the company Echo, with the following information of the accounts of major to the 31 of December of 20xx:

Accounts to pay	$97,200
Accounts receivable	64,300
accumulated depreciation - office	72,750
accumulated depreciation - building	162,100
administrative expenses	56,500
Echo - capital	81,750
cash	53,000
Cost of goods sold	121,700
Echo - Withdrawal	52,000
Interest expense	12,000
merchandise inventory	93,250
Notes payable	154,000
Office equipment	149,750
Prepaid insurance	6,500
Accounts receivable	17,500
Wages to pay	28,700
Sales	365,500
Sales expenses	41,500
equipment	325,000
Office supplies	4,000