A company has sales of $763,000 and cost of goods sold of $306,000 Its gross profit equals: Multiple Choice O $151,000. O $763,000. O $306,000. O $457,000. O $1,069,000.KLM Corporation's quick assets are $5,929,000, its current assets are $12,075,000 and its current liabilities are $8,025,000. Its acid-test ratio equals: Multiple Choice O 0.74. O 0.67. O 0.49. O 1.35. O 2.24.A company purchased $1,900 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $210 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals: Multiple Choice O $210. O $1,633. O $1,639. O $1,690. $1,900.4 company,r purchased $3.400 worth of merchandise. Transportation costs were an additional $300. The company later returned $235 worth of merchandise and paid the invoice within the 191': cash discount period. The total amount paid for this merchandise is: Multiple Choice 0 $33 3 5.00. $321530 0. $3,431.13 0. $3,433.35. 0 O O O $34650 0. Prentice Company. Inc. had cash sales of $95,525, credit sales of $84,200. sales returns and allowances of $2,200, and sales discounts of $3,925. Prentice's net sales for this period equal: Multiple Choice 0 $95,525. $1?3,55Cl. $1?5.?5C| $1??,525 0 O O 0 $1?9,?25 On September 12, Vander Company sold merchandise in the amount of $5,900 to Jepson Company, with credit terms of 3/10, n/30. The cost of the items sold is $4,100. Vander uses the periodic inventory system. The journal entry or entries that Vander will make on September 12 is: Multiple Choice O Sales 5,900 Account receivable 5,900 O Sales 5,900 Account receivable 5,900 Cost of goods sold 4,100 Merchandise Inventory 4,100 O Account receivable 5,900 Sales 5,900 O Account receivable 5,900 Sales 5,900 Cost of goods sold 4,100A company's gross profit was $83,750 and its net sales were $347,800. Its gross margin ratio equals: Multiple Choice O 4.2%. O 24.1% O 75.9%. O $83,750. O $264,050.A company's net sales are $7?5,420. its costs of goods sold are $413,890, and its net income is $111220. Its gross margin ratio equals: Multiple Choice 0 45.6%. 53.4%. 28.3%. 31.5%. 40.596. 0000 Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the purchase on August 7 is: Multiple Choice O Debit Merchandise Inventory $9,750; credit Cash $9,750. O Debit Accounts Payable $9,750; credit Merchandise Inventory $9,750. O Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250. O Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750. O Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750.Multiple-step income statements: Multiple Choice O Are required by the FASB and IASB. O Contain more detail than a simple listing of revenues and expenses. O Are required for the periodic inventory system. O List cost of goods sold as an operating expense. O Are only used in perpetual inventory systems.A company had the following purchases during the current year: January: 16 units at $126 February: 26 units at $136 May: 21 units at $146 September: 18 units at $156 November: 16 units at $166 On December 31, there were 56 units remaining in ending inventory. These 56 units consisted of 8 from January, 10 from February, 12 from May, 10 from September, and 16 from November. Using the specific identification method, what is the cost of the ending inventory? Multiple Choice O $7,088. O $6,976. O $8,502. O $8,170.Marquis Company uses a weighted-average perpetual inventory system. August 2, 19 units were purchased at $10 per unit. August 18, 24 units were purchased at $12 per unit. August 29, 21 units were sold. What is the amount of the cost of goods sold for this sale? Multiple Choice O $478.00 O $214.00 O $288.00 O $233.44 O $216.50A company's inventory records report the following: August 1 Beginning 23 units @ $13 balance August 5 Purchase 18 units @ $12 August 12 Purchase 22 units @ $13 On August 15, it sold 46 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale? Multiple Choice O $1,071 O $697 O $221 O $241 O $598The inventory turnover ratio: Multiple Choice Q Is used to analyze profitability. |s used to measure solvency. Reveals how many times a company sells its merchandise inventory during a period. Reveals how many days a company can sell inventory if no new merchandise is purchased. 0 O O 0 Calculation depends on the company's inventory valuation method. A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale? Multiple Choice O $304 O $296 O $288 O $280 O $276Marquis Company uses a weighted-average perpetual inventory system. August 2 10 units were purchased at $12 per unit. August 18 15 units were purchased at $14 per unit. August 29 12 units were sold. What is the amount of the cost of goods sold for this sale? Multiple Choice O $148.00 O $150.50 O $158.40 O $210.00 O $330.00Mccarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the FIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 11 units that were sold? Multiple Choice O $2,239. O $2,255. $2,200. O $2,228. O $2,215.A company had the following purchases during the current year: January: 10 units at $120 February: 20 units at $130 May: 15 units at $140 September: 12 units at $150 November: 10 units at $160 On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory? Multiple Choice O $3,500. O $3,800. O $3,960. O $3,280. O $3,640.Goods in transit are included in a purchaser's inventory: Multiple Choice 0 t anytime during transit. When the purchaser is responsible for paying freight charges. When the supplier is responsible for freight charges. lfthe goods are shipped FOB destination. filter the hall-tarot.r point between the buyer and seller. 0 O O O At the end of the day, the cash register tape shows $1,440 in cash sales but the count of cash in the register is $1,560. The proper entry to account for this excess is: Multiple Choice O Debit Cash $1,440; credit Sales $1,440. O Debit Cash $1,560; credit Sales $1,560. O Debit Cash $1,560; credit Sales $1,440; credit Cash Over and Short $120. O Debit Cash $1,440; debit Cash Over and Short for $120; credit Sales $1,560. O Debit Cash Over and Short $120; credit Cash $120.The Cash Over and Short account: Multiple Choice O Is used when the cash account reports a credit balance. O Is used to record the income effects of errors in making change and/or processing petty cash transactions. O Is not necessary in a computerized accounting system. O Can never have a debit balance. O Can never have a credit balance.The entry to establish a petty cash fund includes: Multiple Choice O A debit to Cash and a credit to Petty Cash. O A debit to Cash and a credit to Cash Over and Short. O A debit to Petty Cash and a credit to Cash. O A debit to Petty Cash and a credit to Accounts Receivable. O A debit to Cash and a credit to Petty Cash Over and Short.The entr'_-,.r to record reimbursement of the petty cash fund for postage expense should include: Multiple Choice 0 J1 debit to Postage Expense. A debit to Petty Cosh. A debit to Cash. J1. debit to Cash Short and Over. A debit to Supplies. 0 O O O Ferguson Co. has a $200 petty cash fund. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. The journal entry to record the reimbursement of the account includes a: Multiple Choice O Debit to Petty Cash for $200. O Debit to Cash Over and Short for $18. O Credit to Cash for $182. Credit to Inventory for $127. O Credit to Cash Over and Short for $18.Assume that the custodian of a $450 petty cash fund has $64.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include: Multiple Choice O A debit to Cash for $379.50. O A credit to Cash Over and Short for $3.00. O A debit to Petty Cash for $382.50. O A credit to Cash for $385.50. O A debit to Cash for $385.50.A company had $43 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to: Multiple Choice Debit Cash Over and Short for $43. Credit Cash Over and Short for $43. Debit Petty Cash for $43. Credit Petty Cash for $43. @0000 Credit Cash for $43. On a bank reconciliation, the amount of an unrecorded bank service charge should be: Multiple Choice O Added to the book balance of cash. O Deducted from the book balance of cash. O Added to the bank balance of cash. O Deducted from the bank balance of cash. O Noted in memorandum form only.lfa company made a bank deposit on September 30 that did not appear on the bank Statement dated September 30: in preparing the September 30 bank reconciliation, the company should: Multiple Choice Deduct the depOSIt from the bank statement balance Send the bank a debit memorandum, Deduct the depOSIt from the September 30 book balance and add it to the October'l book balance Add the deposit to the book balance of cash. Add the deposit to the bank Statement balance OOOOO If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, how should this error be treated on the bank reconciliation? Multiple Choice O Subtract $45 from the bank's balance. O Add $45 to the bank's balance. O Subtract $45 from the book balance. O Add $45 to the book balance. O Subtract $45 from the bank's balance and add $45 to the book's balance.Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,700 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,700 from Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is: Multiple Choice O Accounts Receivable-A. Hopkins 2,700 Allowance for Doubtful Accounts 2,700 O Allowance for Doubtful Accounts 2,700 Bad debts expense 2,700 O Accounts Receivable-A. Hopkins 2,700 Bad debts expense 2,700 Cash 2,700 Accounts Receivable-A. Hopkins 2,700 O Allowance for Doubtful Accounts 2,700 Accounts Receivable-A. Hopkins 2,700A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: $ 355,000 debit Accounts receivable Allowance for uncollectible accounts 500 credit Net sales 800,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice O $2,630 O $4,800 O $5,300 O $1,630Jasper makes a $84,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be: Multiple Choice O Debit Notes Receivable for $84,000; credit Cash $84,000. O Debit Accounts Receivable $84,000; credit Notes Receivable $84,000. O Debit Cash $84,000; credit Notes Receivable for $84,000. O Debit Notes Payable $84,000; credit Accounts Payable $84,000. O Debit Notes Receivable $84,000; credit Sales $84,000.Jasper makes a $32,000, 90-day, 7.0% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.) Multiple Choice O $2,240. O $186.67. O $560.00. O $24.89. O $1,120.00