Select all that apply Identify the statements below which are correct regarding a merchandiser's multi-step income statement. Accounts receivable is included on the statement. Cost of goods sold is subtracted from net sales in order to determine gross profit. Merchandise inventory is reported on the statement. Total assets is the lastane on the statement. Expenses are subtracted from gross profit in order to calculate net income.

Select all that apply Identify the statements below which are correct regarding a merchandiser's multi-step income statement. Accounts receivable is included on the statement. Cost of goods sold is subtracted from net sales in order to determine gross profit. Merchandise inventory is reported on the statement. Total assets is the lastane on the statement. Expenses are subtracted from gross profit in order to calculate net income.

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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Sales revenue Purchases Net income as a percent of sales revenue Beginning inventory Expenses including income taxes Tax rate a. Required a. Prepare the company's single-step income statement. b. Prepare the journal entry at period-end to eliminate beginning inventory and to record ending inventory. Note: Do not use negative signs with your answers. Income Statement Sales revenue Cost of goods sold: Beginning inventory Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross margin Expenses Income before taxes Income taxes Net income $ $ $440,000 $308,000 $ 15% $55,000 $99,000 25% 440,000 55,000 308,000 X 0 x 0 x 0 x x 0 x 0 x 0 x
Briefly explain the accounting treatment for sales returns.
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Merchandise is sold on credit.
If the balance in the inventory account is greater than the physical count, which of the following journal entries is recorded? a.Debit Merchandise Inventory and credit Inventory Short and Over b.Debit Merchandise Inventory and credit Cost of Goods Sold c.Debit Cost of Goods Sold and credit Merchandise Inventory d.Debit Inventory Short and Over and credit Merchandise Inventory
1) What type of account is Cost of Goods Sold? What statment does it appear on? Is it a Real or Nominal account? Is it temporary? Is it a CR or DR balance.2) I have read on the internet that it is an expense, however looking at my workbook showing the Income Statement it is lilsted under Sales & Revenues and added together to obtain Gross Profit.
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in a merchandising business gross profit is equal to the sales revenue minus (a) the sum of cost of goods sold and sales commissions (b) cost of goods sold (c) the sum of cost of goods sold and operating expenses (d) the sum of cost of goods sold, operating expenses and prepaid expenses
The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase discounts. Freight costs paid by the seller. Returns and allowances. Freight costs paid by the buyer.
The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit Accounts Payable. Purchase Returns and Allowances. Sales Revenue. Inventory.
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