Reference no: EM132841282
Merchandising Operations Questions -
Q1: The ending balance of the Accounts Receivable account was $12,000. Services billed to customers for the period were $21,500, and collections on account from customers were $23,600. What was the beginning balance of Accounts Receivable?
a. None of the others alternatives are correct
b. $33,500
c. $9,900
d. $33,100
e. $14,100
Q2: The following amounts have been extracted from the accounts of Sell-It at its year-end, December 31, 20x9:
Sales $50,000
Cost of Goods Sold $45,000
Inventory $10,000
Account Payable $8,000
The gross profit which Sell-it would report is
a. $42,000
b. $5,000
c. $50,000
d. $40,000
e. None of the others alternatives are correct
Q3: A firm's gross profit on net sales is 30%. The firm had net sales of $400,000 and net cost of purchases of $250,000. If the beginning inventory was $40,000, how much was the ending inventory?
a. $26,000
b. None of the others alternatives are correct
c. $126,000
d. $60,000
e. $40,000
Q4: On November 30, Bargain City has the following financial information relating to November:
Sales $10,000
Sales returns & allowances $1,000
Purchases $4,000
Freight-in $500
Purchase Returns & Allowances $400
Purchase discounts $200
What are the Net Purchases for the month of November?
a. $3,600
b. Some other amount
c. $3,100
d. $3,900
e. $3,800
Q5: A company reports its 20X4 cost of goods sold at $13 million. Its ending inventory for 20X4 is $1.5 million and for 20X3, ending inventory was $1.2 million. How much inventory did the company purchase during 20X4?
a. $10.3 million
b. $13.3 million
c. None of the others alternatives are correct
d. $13.0 million
e. $12.7 million
Q6: The cost of goods sold (COGS) in a periodic inventory system is found by
a. adding the net cost of purchases to the ending inventory
b. deducting the cost of the ending inventory from the net cost of purchases
c. deducting the cost of beginning inventory from the cost of goods available for sale
d. None of the others alternatives are correct
e. deducting the cost of ending inventory from the cost of goods available for sale
Q7: In shipping, the term FOB Destination means that title will pass:
a. When the merchandise is received
b. When the purchase requisition is mailed
c. When the purchase order is received
d. None of the above
e. When the merchandise is shipped
Q8: A company purchases $25,000 of inventory in January 20X6, pays for it in March 20X6 and sells them in May 20X6. The accounting period ends on December 31st. Which of the following statements is correct?
a. The company will report accounts payable of $25,000 in 20X5 Balance Sheet
b. The 20X6 Statement of Retained Earnings will not be affected by this transaction
c. The 20X6 income statement will report the $25,000 as cost of goods sold
d. None of the others alternatives are correct
e. The statement of cash flows for 20X5 will report an operating cash outflow of $25,000
Q9: The 20X5 records of Western Company showed beginning inventory, $100,000; cost of goods sold, $400,000; and ending inventory, $200,000. The amount of inventory to be reported in the Balance Sheet of 20X5 is:
a. $500,000
b. $400,000
c. $300,000
d. $200,000
e. $100,000
Q10: Which of the following accounts are increased by credits and decreased by debits?
a. Retained Earnings
b. All of the above
c. Purchase Returns & Allowances
d. Accumulated Depreciation
e. Allowance for Doubtful Accounts