1) If a company has net sales of $700,000 and cost of goods sold of $455,000, the gross profit percentage is

a)25%.

b)35%.

c)65%.

d)100%.

2)Falk Companys ending inventory is overstated $4,000. The effects of this error on the current years cost of goods sold and net income, respectively, are:

a)Understated, overstated.

b)Overstated, understated.

c)Overstated, overstated.

d)Understated, understated.

3)Cost of goods available for sale consists of two elements: cost of goods purchased and

a)Beginning inventory.

b)Cost of goods purchased.

c)Cost of goods sold.

d)All of the answer choices are correct.

4)

$300,000.

$370,000.

$256,000.

$322,500.

5)

$99,000.

$108,000.

$113,000.

$106,000.

6) Falk Companys beginning inventory is understated $4,000. The effects of this error on the current years cost of goods sold and net income, respectively, are:

a)Understated, overstated.

b)Overstated, understated.

c)Overstated, overstated.

d)Understated, understated.

7)

$113,000.

$108,000.

$92,000.

$100,000.