12 in which of the financial statements do merchandise inventory and cost of goods s 4307076

12 in which of the financial statements do merchandise inventory and cost of goods s 4307076

12) In which of the financial statements do Merchandise Inventory and Cost of goods sold appear?

A) on the balance sheet and statement of owner's equity, respectively

B) on the statement of owner's equity and income statement, respectively

C) on the balance sheet and income statement, respectively

D) on the income statement and statement of cash flows, respectively

13) Which of the following is added to operating income to arrive at net income?

A) sales revenue

B) cost of goods sold

C) interest revenue

D) operating expenses

14) Which of the following is the correct order of subtotals that appear on a multi-step income statement?

A) Operating income, Gross profit, Net income

B) Gross profit, Net sales revenue, Net income

C) Net income, Operating income, Net income

D) Gross profit, Operating income, Net income

15) On a merchandising balance sheet, Merchandise Inventory is listed as a(n):

A) current asset.

B) current liability.

C) expense.

D) revenue.

16) Which of the following is shown on a multi-step income statement, but not on a single-step income statement?

A) gross profit

B) net sales revenue

C) cost of goods sold

D) net income

17) Refer to the following trial balance.

Debit

Credit

Cash

$15,000

Accounts Receivable

42,000

Merchandise Inventory

60,000

Supplies

15,000

Land

300,000

Accounts Payable

$3,000

Notes Payable

25,000

Smith, Capital

326,000

Smith, Withdrawals

3,000

Sales Revenues

480,000

Sales Returns and Allowances

6,000

Sales Discounts

9,000

Cost of Goods Sold

240,000

Salaries Expense

15,000

Utility Expense

69,000

Rent Expense

54,000

Interest Expense

6,000

Totals

$834,000

$834,000

How much are net sales revenues?

A) $465,000

B) $480,000

C) $102,000

D) $96,000

18) Refer to the following trial balance.

Debit

Credit

Cash

$5,000

Accounts receivable

14,000

Inventory

20,000

Supplies

5,000

Land

100,000

Accounts payable

$3,000

Notes payable

25,000

Smith, Capital

90,000

Smith, Withdrawals

1,000

Sales revenues

160,000

Sales returns and allowances

2,000

Sales discounts

3,000

Cost of goods sold

80,000

Salaries expense

5,000

Utility expense

23,000

Rent expense

18,000

Interest expense

2,000

Totals

$278,000

$278,000

How much is the gross profit?

A) $155,000

B) $80,000

C) $230,000

D) $75,000

19) In a multi-step income statement, which of the following items is excluded from the calculation of operating income?

A) sales revenue

B) interest expense

C) selling expense

D) administrative expense

20) Expenses that fall outside the regular operations of a business are:

A) not shown in the income statement of a merchandiser.

B) treated as current assets and are shown as merchandise inventory.

C) included under the other revenues and expenses section of the income statement.

D) included in the selling and administrative expense section of the income statement.

21) Refer to the following trial balance.

Debit

Credit

Cash

$15,000

Accounts Receivable

42,000

Merchandise Inventory

60,000

Supplies

15,000

Land

300,000

Accounts Payable

$3,000

Notes Payable

25,000

Smith, Capital

326,000

Smith, Withdrawals

3,000

Sales Revenues

480,000

Sales Returns and Allowances

6,000

Sales Discounts

9,000

Cost of Goods Sold

240,000

Salary Expense

15,000

Utility Expense

69,000

Rent Expense

54,000

Interest Expense

6,000

Totals

$834,000

$834,000

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