Multiple choice The major revenue of a merchandiser iswhile the major expense(s) is(are)sales revenue, cost of goods soldb. gross margin, operating expensesincome from operations, cost of goods soldd. sales revenue, operating expensesa.C.2 Inventory held by a business is a(n)a. liability, withdrawalasset, expenseliability, assetand when sold becomes a(n)b.C.d.asset, contra assetSales revenue minus sales returns and allowances and sales discounts eguals:

Sales - Sales is Revenue for the company. It can earn by the company through cash or credit. Cost of…

The major revenue of a merchandiser is while the major expense(s) is(are) sales revenue, cost of goods sold gross margin, operating expenses income from operations, cost of goods sold d. sales revenue, operating expenses a. b. C. 2 Inventory held by a business is a(n) a. liability, withdrawal asset, expense and when sold becomes a(n) b. C. liability, asset d. asset, contra asset

The major revenue of a merchandiser is while the major expense(s) is(are) sales revenue, cost of goods sold gross margin, operating expenses income from operations, cost of goods sold d. sales revenue, operating expenses a. b. C. 2 Inventory held by a business is a(n) a. liability, withdrawal asset, expense and when sold becomes a(n) b. C. liability, asset d. asset, contra asset

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4MC: Which of the following represents the components of the income statement for a service business...

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Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expenses
In the income statement, Freight-In is (a) added to purchases. (b) subtracted from purchases. (c) added to sales. (d) subtracted from cost of goods.
Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold
Which of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profit
On which financial statement would the merchandise inventory account appear? A. balance sheet B. income statement C. both balance sheet and income statement D. neither balance sheet nor income statement
Sales Revenue is a(n) Multiple Choice O account and asset; Sales Discounts revenue: Sales Returns and Allowances revenue; Cost of Goods Sold liability; Gross Profit is an expense account.
What is the term applied to the excess of revenue from sales over the Cost of Merchandise Sold? a. net income Ob. gross sales Oc. gross profit Od. income from operations
1. Selling expenses are shown in which of the following statement?a. Cost of Goods Soldb. Profit and Loss Accountc. Manufacturing Accountd. Profit and Loss Appropriation Account 2. Which of the following is used to determine the cost of goods sold?a. Beginning Inventory + Purchasesb. Beginning Inventory + Purchases - Salesc. Beginning Inventory + Net Purchases + Direct Expenses - Ending Inventoryd. Ending Inventory + Purchases - Beginning Inventory 3. Which of the following would not be considered as a component of the "cost" of stock?a. Salaries of selling staffb. Transportation inward costsc. Import dutiesd. Purchase price
Gross profit is calculated as the difference between net sales revenue and ________. A. cost of merchandise inventory B. purchase expense C. cost of goods sold D. operating expenses
In accounting for by-products, when the by-products are sold for more than the estimated sales value, the difference is: a. credited to Gain or Loss on Sale of By-Product b. debited to Gain or Loss on Sale of By-Product c. immaterial, so not recorded. d. credited to By-Product Inventory.
The price a business pays for goods it purchases to sell is called: A. markup B. purchase price C. cost of merchandise