No Service ?11:45 AM9 100%cdn.fbsbx.comDoneOFFICE OF THE VICE PRESIDENT FOR BRANCHES AND EXTEN SIONSPUP MARAGONDON BRANCH27. The classification and normal balance of the sales discount account would bec. revenue and creditd. adjunct account and credita. contra revenue and debitb. contra revenue and debit28. Which of the following will be included in the Merchandise Inventory of ABC Trading as of December 31, 2021?a. Merchandise purchased still in transit shi pped FOB shipping point.b. Merchandise purchased still in transit shipped FOB destination.c. Merchandise sold still in transit shipped FOB shipping point.d. Goods held on consignment29. The type of transaction that would appearin the sales journal would be a sale ofa. equipment for cashb. equipment in exchange for a notec. merchandise for cashd. merchandise on account30. The major expense of a merchandising business isa. cost of goods soldb. Rent expensec. Freight-outd. uncollectible accounts expense31. Which of the following is not true about the perpetual inventory system?a. Purchase is recorded as debit to merchandise inventory account.b. After a physical count, inventory is credited for any missing inventory.c The entry to record a sale includes a debit to cost of sales and a credit to merchandise inventory.d. Purchase return is recorded by debiting accounts payable and crediting purchase returns and allowances.32. Merchandise inventory at the end is understated because goods in the hands of the consignee are not included in thephysical count. What is the effect of this error?a. Gross profit is understatedb. Cost of sales is unders tatedC. net income is overstatedd. Cost of goods available for sale is overstated33. Which of the following account is not closed at the end of the accounting period?c. Purchasesd. Ending Inventorya. Beginning Inventoryb. Sales34. FOB Shippi ng point meansa. Title passes at the point of shipment, seller shoulders the freight costs.b. Title passes at the point of shipment, buyer shoulders the freight costs.c.Title passes at the time the goods arrived; seller shoulders the freight costs.b. Title passes at the at the time the goods arrived; buyer shoulder the freight costs.35. Closing entries in a merchandising company requires credit to Income summary and debits to the following except:a. Merchandise inventory, endc. Salesb. Purchase returns and Allowancesd. Sales Discount36. Each time an entry is recorded in the purchases journal, the credit would be entered in thea. accounts payable columnb. purchase columnc. accounts receivable columnd. cash column37. Which of the following is not correct?a. A partnership at will is one whose term is fixed.b De jure partnership is one, which has not complied with all legal requirements pertaining to its formation.c. De facto partnership is one, which has complied with all the legal requirements pertaining to its formation.d. All of the above.e. None of the above.38. What is the valuation if a partner contributes a noncash property to the partnership?c. book valued. face valuea. Fair valueb. Cost39. Every partner is assumed as an agent of the partnership for the purposes of its business.a. Secret Agencyb. Mutual Agencyc. Mutual Agreementd. Mutual Understanding2| PAGEACC020033 FINANCIAL ACCOUNTING AND REPORTINGRepublic of the Philippines

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27. The classification and normal balance of the sales discount account would be C. revenue and credit d. adjunct account and credit a. contra revenue and debit b. contra revenue and debit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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