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Freight-in is an account that is subtracted from the Purchases account 1. Freight-in is an account that is subtracted from the Purchases account to arrive at cost of goods purchased. 2. Under a periodic inventory system, the acquisition of inventory is charged to the Purchases account. 3. Under a periodic inventory system, freight-in on merchandise purchases should be charged to the Inventory account. 4. In a worksheet, cost of goods ...

Other / Other 01 Apr 2016

The primary source of revenue for a wholesaler 1. The primary source of revenue for a wholesaler is a. investment income. b. service fees. c. the sale of merchandise. d. the sale of fixed assets the company owns. 2. Sales revenue less cost of goods sold is called a. gross profit. b. net profit. c. net income. d. marginal income. 3. After gross profit is calculated, operating expenses are deducted to determine a. gross margin. b. ...

Other / Other 01 Apr 2016

In a multiple-step income statement, income from operations 1. Merchandise inventory is classified as a current asset in a classified balance sheet. 2. Gain on sale of equipment and interest expense are reported under other revenues and gains in a multiple-step income statement. 3. The gross profit section for a merchandising company appears on both the multiple-step and single-step forms of an income statement. 4. In a multiple-step ...

Other / Other 01 Apr 2016

The major difference between the balance sheets of a service company 1. If a merchandising company sells land at more than its cost, the gain should be reported in the sales revenue section of the income statement. 2. The major difference between the balance sheets of a service company and a merchandising company is inventory. Business Management Assignment Help, Business Management Homework help, Business Management Study Help ...

Other / Other 01 Apr 2016

Stine Company purchased merchandise 1. Freight costs paid by a seller on merchandise sold to customers will cause an increase a. in the selling expense of the buyer. b. in operating expenses for the seller. c. to the cost of goods sold of the seller. d. to a contra-revenue account of the seller. 2. Bryan Company purchased merchandise from Cates Company with freight terms of FOB shipping point. The freight costs will be paid by the a. ...

Other / Other 01 Apr 2016

Sales revenues are earned during the period cash is collected from the buyer 1. Freight terms of FOB Destination means that the seller pays the freight costs. 2. Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller. 3. Sales revenues are earned during the period cash is collected from the buyer. 4. The Sales Returns and Allowances account and the Sales Discount account are both classified ...

Other / Other 01 Apr 2016

Holt Company sells merchandise 1. The collection of a $600 account within the 2 percent discount period will result in a a. debit to Sales Discounts for $12. b. debit to Accounts Receivable for $588. c. credit to Cash for $588. d. credit to Accounts Receivable for $588. 2. Company X sells $400 of merchandise on account to Company Y with credit terms of 2/10, n/30. If Company Y remits a check taking advantage of the discount offered, ...

Other / Other 01 Apr 2016

Selling expenses relate to general operating activities 1. Nonoperating activities exclude revenues and expenses that result from secondary or auxiliary operations. 2. Selling expenses relate to general operating activities such as personnel management. 3. Net sales appears on both the multiple-step and single-step forms of an income statement. 4. A multiple-step income statement provides users with more information about a companyà ...

Other / Other 01 Apr 2016

When goods are returned that relate to a prior cash 1. When goods are returned that relate to a prior cash sale, a. the Sales Returns and Allowances account should not be used. b. the cash account will be credited. c. Sales Returns and Allowances will be credited. d. Accounts Receivable will be credited. 2. The Sales Returns and Allowances account does not provide information to management about a. possible inferior merchandise. b. ...

Other / Other 01 Apr 2016

Feine Company sells merchandise on account 1. A sales discount does not a. provide the purchaser with a cash saving. b. reduce the amount of cash received from a credit sale. c. increase a contra-revenue account. d. increase an operating expense account. 2. Company A sells $500 of merchandise on account to Company B with credit terms of 2/10, n/30. If Company B remits a check taking advantage of the discount offered, what is the am ...

Other / Other 01 Apr 2016