Test 5 - Chapter 6

Question 1 of 10

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When goods are purchased for resale by a company using a periodic inventory system

Select one of the following:

  • purchases are debited to Merchandise Inventory

  • purchases are debited to Purchases

  • purchase returns are debited to Purchases R&A

  • freight costs are debited to Purchases

Question 2 of 10

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In determining cost of goods purchased

Select one of the following:

  • beginning inventory is added to net purchases

  • freight out is added to net purchases

  • purchase R&A are deducted from net purchases

  • freight in is added to net purchases

Question 3 of 10

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Which of the following should not be included in the physical inventory of a company

Select one of the following:

  • goods held on consignment from another company

  • goods shipped on consignment from another company

  • goods in transit purchased from a manufacturer shipped FOB shipping point

  • none of the above

Question 4 of 10

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If beginning inventory is 60 000, cost of goods purchased is 380 000, and ending inventory is 50 000. CoGS=?

Select one of the following:

  • 330k

  • 370k

  • 390k

  • 420k

Question 5 of 10

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A multiple step income statement in a periodic inventory system differs from that in a perpetual inventory system because it has

Select one of the following:

  • a detailed cost of goods section

  • net sales

  • gross profit

  • operating expenses

Question 6 of 10

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FOB shipping point indicates that

Select one of the following:

  • there are no shipping charges involved

  • the seller and the purchaser split shipping charges

  • the seller will record shipping charges on their books

  • the purchaser will record shipping charges on their books

Question 7 of 10

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Current ratios for four companies are provided below, Select the current ratio of the company in the best position

Select one of the following:

  • 1.31:1

  • 2.10:1

  • 2.30:1

  • 0.44:1

Question 8 of 10

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Inventory turnover stats for four companies are provided below. Select the inventory turnover of the company in the best position

Select one of the following:

  • 4.57 times

  • 2.10 times

  • 10.92 times

  • 8.44 times

Question 9 of 10

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Which of the following would be considered a selling expense?

Select one of the following:

  • Freight In

  • Amortization Expense - Display Fixtures

  • Amortization Expense - Office Equipment

  • Loss on Sale of Display Fixtures

Question 10 of 10

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In a periodic inventory system, cost of goods sold is recorded

Select one of the following:

  • on a daily basis

  • on a monthly basis

  • on an annual basis

  • with each sale

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Test 5 - Chapter 6

Claudia Voin
Quiz by , created over 1 year ago

Grade 12 Accounting Midterm Prep

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Claudia Voin
Created by Claudia Voin over 1 year ago
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