bbprod.hvcc.edu Remaining Time: 1 hour, 04 minutes, 37 seconds. Question Completion Status: QUESTION 18 4 points Sa A company purchased $1,800 of merchandise on December 5. On December 7, it returned $200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals: (careful you must consider the discount) $ 200. $1,564 $1,568.. $1,600 $1,800 4 points Save QUESTION 19 The operating cycle of a merchandising company Begins with the purchase of merchandise. Ends with the collection of cash from the sale of merchandise. Can vary in length among different merchandising companies. Sometimes involves accounts receivable. All of the above. 4 points QUESTION 20 Multiple-step income statements: Are required by the FASB. Contain more detail than a simple listing of revenues and expenses. Are required for the perpetual inventory system. List cost of goods sold as an operating expense. can only be used in perpetual inventory systems Click Save and Submit to save and submit. Click Save All Ansters to see all answers Save All Answers Save and Sub 888 DI DD 59 F FB F 54 510 Remaining Time: 1 hour, 04 minutes, 26 seconds. Question Completion Status: QUESTION 21 4 point An overstatement of ending inventory will cause An overstatement of assets and equity on the balance sheet. An understatement of assets and equity on the balance sheet. An overstatement of assets and an understatement of equity on the balance sheet. An understatement of assets and an overstatement of equity on the balance sheet QUESTION 22 4 points During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is: Specific identification method. Average cost method. Weighted average method. FIFO method. LIFO method 4 points QUESTION 23 J.C. Penny had net sales of $28,496 million, its cost of goods sold was $19,092 million, and its net income was 1997 million. Its gross margin ratio equals: 3.5% 5.24 67%. 149.34 Click Save and Submit to send aber Click Save Alle alla Save All Answers Save and DII F 57 FE 510 5 6 7 8 9 QUESTION 23 J.C. Penny had net sales of $28,496 million, its cost of goods sold was $19,092 million, and its net income was $997 million. Its gross margin ratio equals: 3.5%. 5.2%. 33%. 67% 149.3%. QUESTION 24 4 Generally accepted accounting principles require that the inventory of a company be reported at: Market value. Historical cost. Lower of cost or market. Replacement cost Retail value. QUESTION 25 4 point The gross margin ratio: Is also called the net profit ratio. Measures a merchandising firm's ability to earn a profit from the sale of inventory. Is also called the profit margin. Is a measure of liquidity. Should be greater than 1. Click Save and submit to save and submit Click Save All Answers to sow all answers Save All Answers Saw 888 DI FS F2 FR FYO FM A C 9 5 * 00 ) 0 6 7