HAPTERS 4,5& 6--Page 3 16. If a company han net $450,000, the gross profit percentages 60% 40% sales of $750,000 and cost of goods sold of c. 20% d. 100 17. Gross profit does not appear a. on a multiple-step income statement b. on a single-step income statement C. to be relevant in analyzing the operation of a merchandiser d on the income statement if the periodic inventory system ia ia used because it cannot be calculated. 18. The factor which determines whether or not goods should be included in a physical count of inventory is a. phyaical possession. b. legal title c. management 's judgment. d. whether or not the purchase price has been paid. 19. If goods in transit are shipped FOB deatination a. the seller has legal title to the goods until they are delivered. b. the buyer has legal title to the goods until they are delivered c. the transportation company has legal title to the goods while the goods are in transit d. no one has legal title to the goods until they are delivered. 20. Under a consignment arrangement, the a. consignor has ownership until goods are sold to a customer b. consignor has ownership unti1 goods are shipped to the consignee. c. consignee has ownership when the goods are in the consignee's possession. d. consigned goods are included in the inventory of the consignee 21. West Company has the following account balances: Purchases Sales Returns and Allowances Purchase Discounts Freight-in Delivery Expense $35, 000 4,000 2,500 1,875 2,500 The cost of goods purchased for the period is a. $37,500. b. $34,375. c $36, 875. d. $32, 875