FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Accounting for Merchandising Businesses

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Cleary Company had total Sales of $550,000; Sales Discounts of $10,000; Sales Returns of $40,000 and Cost of Merchandise Sold of $200,000 during 2010. The total asset balance at the beginning of the year was $175,000 and at the end of the year was $167,000. Calculate the ratio of net sales to total assets (Round answer to 2 decimal points) .

A) 1.75
B) 2.92
C) .34
D) .57

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

Discuss the following statement:

Correct Answer

verified

"Operating cycles for all merchandising ...

View Answer

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Which of the following accounts has a normal credit balance?

The primary difference between a periodic and perpetual inventory system is that a

Sales to customers who use bank credit cards, such as MasterCard and VISA, are generally treated as credit sales.

In a perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Sold is debited as part of the transaction.

A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is

Which of the following costs would be included in merchandise inventory?

Gross profit minus selling expenses equals net income.

Retailers record all credit card sales as credit sales.

Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a

If merchandise costing $3,500, terms FOB destination, 2/10, n/30, with prepaid freight costs of $125, is paid within 10 days, the amount of the purchases discount is $70.

Based upon the following data, determine the cost of merchandise sold for August.

Which account will be included in both service and merchandising companies closing entries?

Sellers and buyers are required to record trade discounts.

Which of the following items should not be included in the cost of ending merchandise inventory?

In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is

Under the periodic inventory system, the cost of merchandise sold is recorded when sales are made.

Income that cannot be associated definitely with operations, such as a gain from the sale of a fixed asset, is listed as Other Income on the multiple-step income statement.

The ratio of net sales to assets measures how effectively a business is using its assets to generate sales.