CODE 2 fit less a. administrative expenses b. operating expenses e. other expenses and losses. d. selling expenses. 02: Two categories of expenses for merchandising companies are a. cost of goods sold and financing expenses b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold Q3: Cost of goods sold is determined only at the end of the accounting period in a perpetual inventory system. a periodic inventory system. both a perpetual and a periodic inventory system. neither a perpetual nor a periodic inventory system. a. b. c. d. 04: In the perpetual inventory system, cost of goods sold is recorded b. a periodic inventory system. c. both a perpetual and a periodic inventory system. d. neither a perpetual nor a periodic inventory system. Q4: In the perpetual inventory system, cost of goods sold is recorded a. on a daily basis b. on a monthly basis. c. on an annual basis. d. with each sale Q5: Flynn Company purchased merchandise inventory with an invoice price of $5,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Flynn Company pays within the discount period? a. $5,000 b. $4,900 c. $4,500 d. $4,600 r a perpetual inventory system, acquisition of merchandise for resale is debited to 06: Unde the a. Merchandise Inventory account. b. Purchases account. c. Supplies account. d. Cost of Goods Sold account. 07: If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the a. Merchandise Inventory account will be increased. b. Merchandise Inventory account will not be affected. c. seller will bear the freight cost. d. carrier will bear the freight cost. Q8: Zach's Market recorded the following events involving a recent purchase of merchandise: Received goods for $50,000, terms 2/10, n/30. Returned $1,000 of the shipment for credit. luking a perpetuall system agrees to treight terms of FOB shipping point, then the a. Merchandise Invensory sccount will be increased. b. Merchandise Inventory account will not be affected c seller will bear the freight cost d. carrier will bear the freight cost 08: Zach's Market recorded the following events involving a recest purchase of merchandise Received goods for $50,000, terms 2/10, n/30. Resumed 51,000 of the shipmes for credit. Paid $250 freight on the shipment Paid the invoice within the discount period company's merchandise inventory As a result of these events, the a. increased by $48,020. b. increased by $49,250 c. increased by $48,265. d increased by $48,270. Q9: Holt Company sells merchandise on account for $2,000 to Jones Company with credir terms of 2/10, n/30. Jones Company returns $400 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? a. $1,960 b. S1,968 C, $1,600 d. $1,568 010: Thelman Company repeorted the following balamces at hume 30, 208 2008 es 310,800 Sales Retuams and Allowances 400 Sales Discounts 200 Cost of Goods Sold 5,000. Net sales for the month is a s10,800. b. $10,400. e. $10,200. d. $5,200. Q11-12-13: During 2008, Salon Enterprises generated revenues of $60,000. The company's expenses were as follows: cost of goods sold of $30,000, operating expenses of $12,000 and a loss on the sale of equipment of $2,000. QI1: Salon's gross profit is a $60,000 b. $30,000. c. $18,000. d. $16,000. Q12: Salon's income from operations is a, $60,000. d 83.300 011-12-13 During 2008, Salon Enerpeises geeraned revovaes ef 5eo espenses were so fo cost of goods seld of 530,000, operating espenacs of 512,000 nd e loss on the sale of aquipmem of $2.000 011: Salen's groes profie ia S60.000. b $30,000 $18,000 d. $16,000 Q12: Salon's income from upcrations is a. $60,000 b. $30,000 c. $18,000. d. $12,000. 013: Salon's net income is a $60,000 b. $30,000. c. $18,000 d $16,000