pplies Expense will increase net profit2-Office Supplies Expenses is shown part of distr. Statement 1-Salaries payable is a type of expense.Statement 2-Owner's withdrawals are classified as an expense.SCI.3. Statement 1- Sales is a revenue account.Statement 2- Sales is increased by the Sales Discount.4. Statement 1- The difference between net sales and gross profit is the cost of goods solStatement 2 The cost of goods sold is determined by subtracting from the merchandinventory beginning, the amount of the merchandise inventory end.5. Statement 1 - The ending inventory of one period is the beginning inventory of tieperiod.Statement 2 - The balance in the merchandise inventory account at the beginning OLperiod represents the total cost of the merchandise on hand at that time.Multiple Choice. Write on the answer sheet the letter of the correct answer.1. Which of the following account does not belong in the group?a. Sales Discountb. Purchasesc. Sales Returns and Allowancesd. Freight Out2. It shows only two sections of the SCI, the total revenue, and the total expense.a. Multiple-step SCIb. Single-Step SCIc. Report Form of the SCId. Account Form of the SCI3. Gross Profit is computed asa. Gross Sales less Operating Expensesb. Net Sales less Operating Expensesc. Net Sales less Cost of Salesd. Net Sales plus Cost of Sales4. Which of the following does not belong in the group that presents the ExpensestMultiple-Step SCI?a. Cost of Salesb. Distribution CostC. Finance Costsd. Other Expenses5. A business can generate income in so many ways as listed below, EXCEPT:a. Sale of Goodsb. Sale of Servicesc. Sale of Property of the businessd. Sale of Property of the ownerFUNDAMENTALS OF ASUDOLLY VINLUAN-ABASTA, CPA, MBAMICHAEL JULIAN C. SORNES, LPTAUTHORS

Hi student Since there are multiple questions, we will answer only first question.

Answered: sheet the letter of the correct ar 1.…

sheet the letter of the correct ar 1. Which of the following account does not belong in the group? a. Sales Discount b. Purchases c. Sales Returns and Allowances d. Freight Out It shows only tu

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The trade discount on purchases is recorded A. O When it is received B.When the inventory is purchased C.When the inventory is sold D. O Not at all recorded in the books
Which of the following accounts are characterized as a "contra" account? (Select ALL that apply) O Equipment O Deferred Revenue OAccumulated Depreciation O Accounts Payable O Depreciation Expense O Sales Allowances O Sales return O Allowance for Uncollectible A/R O Bad Debt Expense O Accounts Receivable O Notes Payable O Cost of Goods Sold ASUS
The normal balance of the account "Sales Allowances" is a Debit; it is a contra revenue account to Sales Revenue OB. Credit; it is a contra asset account to Accounts Receivable OC. Debit, it is an expense in the income statement OD. Credit, it is a contra expense account to Bad Debt Expense -because A.
Which of the following accounts would normally have adebit balance?a. Inventoryb. Sales Returns and Allowancesc. Sales Discountsd. All of the above
Please help with the following question COMPLETION STATEMENTS 1.Notes and accounts receivable that result from sales transactions are often called______________ receivables. 2.Two accounting problems associated with accounts receivable are (1) ______________ and (2) ______________ accounts receivable. 3.The net amount expected to be collected in cash from receivables is the _____________. 4.When credit sales are made, _________________ Expense is considered a normal and necessary risk of doing business on a credit basis. 5.The two methods used in accounting for uncollectible accounts are the ____________ method and the ______________ method. 6.Allowance for Doubtful Accounts is a_____________ account which is ______________ from Accounts Receivable on the balance sheet. 7.When the allowance method is used to account for uncollectible accounts, ____________ is debited when an account is determined to be uncollectible. 8.The _________________ basis of…
If a customer purchases merchandise on credit and returns the defective merchandise beforepayment, what accounts would recognize this transaction?A. sales discount, cashB. sales returns and allowances, cashC. accounts receivable, sales discountD. accounts receivable, sales returns and allowances
5. Shipments of inventory to the branch may be billed at other than cost. When billing prices are above cost, the unrealized mark-up is initially recorded by the home office a, in an "allowance" account. b. as a credit to investment in branch account. c. as an addition to the cost of "shipments to branch." d. a and c
Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a freight cost paid by the buyer for goods shipped FOB shipping point b. freight cost prepaid by the seller for good shipped FOB destination c. freight cost prepaid by the buyer for goods shipped FOB shipping point d. freight cost prepaid by the seller for goods shipped FOB shipping point
From page 5-2 of the VLN, which of the following accounts are subtracted from sales to compute Net sales? Allowance for uncollectible accounts Deferred revenue Sales discounts Sales returns and sales allowances Accumulated depreciation Trade discount
Terminology Match each phrase with its definition. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profit G. Merchandise inventory H. Purchases discount 1. 2. 3. 4. 5. 6. 7. 8. Goods a company owns and expects to see to its customers. Time period that can pass before a customer's full payment is due. Seller's description of a cash discount granted to buyers in return for early payment. Ownership of goods is transferred when the seller delivers goods to the carrier. Purchaser's description of a cash discount received from a supplier of goods. Difference between net sales and the cost of goods sold. Time period in which a cash discount is available. Ownership of goods is transferred when delivered to the buyer's place of business. 1
Several accounts are listed below a. Purchases Returns and Allowances b. Sales Discounts c. Wages Expense d. Allowance for Doubtful Accounts e. Unearned Rent f. Income Taxes Payable g. Dividends Distributed h. Interest Revenue i. Inventory REQUIRED: List the accounts above that would normally have a credit balance
10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IV