Question 1 Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement. Question 2 Bolton Company’s gross profit rate last year was 32.0% and this year it is 28.4%. Which of the following would not be a possible cause for this decline in the gross profit rate? Question 3 The amount of cost of good available for sale during the year depends on the amounts of Question 4 The Sales Returns and Allowances account does not provide information to management about Question 5 Stan’s Market recorded the following events involving a recent purchase of merchandise: As a result of these events, the company’s merchandise inventory Question 6 Gross profit equals the difference between sales and Question 7 A company using a perpetual inventory system that returns goods previously purchased on credit would Question 8 The collection of a $900 account beyond the 2 percent discount period will result in a Question 9 Expenses that are associated with sales are classified as Question 10 Income from operations is gross profit less Question 11 Goods held on consignment are Question 12 If companies have identical inventoriable costs but use different inventory flow assumptions when the price of goods have not been constant, then the Question 13 An assumption about cost flow is necessary Question 14 Noise Makers Inc has the following inventory data:A physical count of merchandise inventory on July 30 reveals that there are 30 units on hand. Using the average cost method, the value of ending inventory is Question 15 Which statement is false? Question 16 Dole Industries had the following inventory transactions occur during 2010:The company sold 153 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO? (rounded to whole dollars) Question 17 A company uses the periodic inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period balance sheet are Question 18 Grape Gratuities Company has the following inventory data:A physical count of merchandise inventory on July 30 reveals that there are 35 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is Question 19 Johnson Company has a high inventory turnover that has increased over the last year. All of the following statements are true regarding this situation except Johnson County: Question 20 Use the following information regarding Black Company and Red Company to answer the question “Which amount is equal to Black Company’s “days in inventory” for 2010 (to the closest decimal place)?â€
Question 1 Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement.
Question 2 Bolton Company’s gross profit rate last year was 32.0% and this year it is 28.4%. Which of the following would not be a possible cause for this decline in the gross profit rate?
Question 3 The amount of cost of good available for sale during the year depends on the amounts of
Question 4 The Sales Returns and Allowances account does not provide information to management about
Question 5 Stan’s Market recorded the following events involving a recent purchase of merchandise: As a result of these events, the company’s merchandise inventory
Question 6 Gross profit equals the difference between sales and
Question 7 A company using a perpetual inventory system that returns goods previously purchased on credit would
Question 8 The collection of a $900 account beyond the 2 percent discount period will result in a
Question 9 Expenses that are associated with sales are classified as
Question 10 Income from operations is gross profit less
Question 11 Goods held on consignment are
Question 12 If companies have identical inventoriable costs but use different inventory flow assumptions when the price of goods have not been constant, then the
Question 13 An assumption about cost flow is necessary
Question 14 Noise Makers Inc has the following inventory data:A physical count of merchandise inventory on July 30 reveals that there are 30 units on hand. Using the average cost method, the value of ending inventory is
Question 15 Which statement is false?
Question 16 Dole Industries had the following inventory transactions occur during 2010:The company sold 153 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO? (rounded to whole dollars)
Question 17 A company uses the periodic inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period
Question 18 Grape Gratuities Company has the following inventory data:A physical count of merchandise inventory on July 30 reveals that there are 35 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is
Question 19 Johnson Company has a high inventory turnover that has increased over the last year. All of the following statements are true regarding this situation except Johnson County:
Question 20 Use the following information regarding Black Company and Red Company to answer the question “Which amount is equal to Black Company’s “days in inventory” for 2010 (to the closest decimal place)?â€
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