1 Sales revenue minus sales returns and allowances and sales discounts equals_______.

A.

cost of goods sold

B.

net sales

C.

gross margin

D.

income from operations

2 When the buyer pays the freightcosts, the entry to record the payment under a perpetual inventory system would include a debit to_______.

A.

Inventory

B.

Purchases Discounts

C.

Freight In

D.

Delivery Expense

3 When recording a $4,500

sale on account under the perpetual inventorysystem, where the cost of the merchandise is $3,000 include a_______.

A.

debit to Sales Revenue for $4,500

B.

credit to Sales Revenue for $3,000

C.

credit to Inventory for $3,000

D.

debit to Inventory for $3,000

4 An adjusted trial balance is shown below.

What will the final balance in Capital be after the closingentries?

A.

$36,800

B.

$37,800

C.

$24,000

D. $12,700

Cash $12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable $4,200 Salary payable 1,000 Notes payable 800 Capital 13,800 Withdrawals 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales discounts 400 Cost of goods sold 25,000 Salary expense 21,000 Rent expense 14,000 Amortization expense 8,500 Supplies expense 500 Total $115,800 $115,800

5

Referring to the tablebelow, what is the netincome?

A.

$60,000

B.

$180,000

C.

$55,000

D. $65000

Sales revenue $480,000 Cost of goods sold 300,000 Sales discounts 20,000 Sales returns and allowances 15,000 Operating expenses 85,000 Interest revenue 5,000

6 When a discount is taken for prompt payment under a periodic inventorysystem, the purchaser would credit_______.

A.

Accounts Payable

B.

Inventory

C.

Purchases Discounts

D.

Accounts Receivable

7 To update the inventory records for the sale of merchandise on account under a periodic inventorysystem, the entry would include_______.

A.

a debit to Cost of Goods Sold

B.

a credit to Inventory

C.

no entry as inventory records are not updated at the time of sale

D.

a debit to Accounts Payable

8 Beginning inventory plus net purchases and plus freight in equals_______.

A.

gross purchases

B.

net purchases

C.

cost of goods available for sale

D.

cost of goods sold

9 Which accounts are affected in the closing process under a periodic inventorysystem?

A.

Cost of GoodsSold, Sales Returns andAllowances, and Sales Discounts

B.

GrossMargin, Sales Returns andAllowances, and Sales Discounts

C.

operatingexpenses, SalesRevenue, and Purchases

D.

Gross Margin and Cost of Goods Sold

10Referring to the tablebelow, net income is_______.

A.

$214,000

B.

$176,000

C.

$179,000

D.$161000

Sales revenue $750,000 Interest revenue 18,000 Freight in 44,000 Beginning inventory 75,000 Purchases discounts 20,000 Sales returns and allowances 44,000 Operating expenses 99,000 Interest expense 15,000 Ending inventory 72,000 Purchases 415,000 Sales discounts 25,000 WIlliam Browning, Withdrawals 61,000 Purchase returns and allowances 36,000