1.If Johnson purchases inventory for $750 with terms of 2/10, n/30, how much will Johnson pay to satisfy the liability, assuming he takes the discount? a. $500 b. $490 c.$680 d. $735

2.If Sales=$1,000 and COGS=$600, and operating expenses = $100, the gross profit percentage would be a. 50% b. 40% c. 20% d. 10%

3.Smith purchased inventory: 100 units @ $5 per unit and 100 units at $6 per unit. If Smith sells 130 units, the COGS under FIFO would be: a. $500 b. 620 c. $480 d.$680

4.Johnson had an average inventory this year of $15,000. The Cost of Goods Sold was $90,000 and Sales were $180,000. The inventory turnover would be: a. 6 times b. 12 times c. .5 d. 2 times

5.Johnson owns equipment costing $90,000 that currently has $10,000 of accumulated depreciation. The book value of the equipment is: a. $90,000 b. $100,000 c. $80,000 d. $60,000

6. Howard has current assets of $24,000 and current liabilities of $16,000. The current ratio would be: a. 2:1 b. 8:1 c.6:1 d. 1.5 to 1

7. In the closing process, one of these accounts does not get closed. Which one? a. Service Revenue b. Depreciation Expense c. Income Summary d. Smith Capital

8.Sales minus Sales Discounts minus Sales Returns and Allowances is equal to: a. Gross Profit b. Net Income c. Net Sales d. Cost of Goods Sold

9.In a bank reconciliation, the items that require journal entries are the items on which side? A. the books side b. the bank side c. items on both sides