Hi , I need help with this question.

Answer all of the questions by selecting the answer you think is correct. Questions with more than one answer selected will be marked as incorrect. Each question is worth 1 mark.

1. The primary source of revenue for a wholesaler is generated by

a. investments.

b. providing services.

c. the sale of merchandise.

d. the sale of property, plant, and equipment the company owns.

2. Which of the following formulas is incorrect?

a. Gross profit operating expenses = income before income tax.

b. Net sales cost of goods sold = gross profit.

c. Net sales gross profit = cost of goods sold.

d. Operating expenses cost of goods sold = gross profit.

3. Under the perpetual inventory system, in addition to making the entry to record the sale, a company would:

a. Debit Merchandise Inventory and credit Cost of Goods Sold

b. Debit Cost of Goods Sold and credit Purchases

c. Debit Cost of Goods Sold and credit Merchandise Inventory

d. Make no additional entry until the end of the period

4. In a 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. each time a sale occurs

5. On July 10, Arbour Inc. purchased $5,000 of inventory on terms of 2/10, n/30. The amount due on August 25 is:

a. $5,100.

b. $5,000.

c. $4,900.

d. $4,990.

6. Which one of the following items is not considered to be a part of the cost of a truck purchased for business use?

a. insurance during transit

b. motor vehicle licence

c. freight charges incurred when acquiring the truck

d. cost of lettering on the side of the truck

7. Harmon Medical Ltd. purchases land for $290,500 cash. The title and legal fees totalled

$1,500. The clinic has the land graded for $25,000. What amount does Harmon Medical record as the cost for the land?

a. $290,500

b. $292,000

c. $315,500

d. $317,000

8. In calculating depreciation, residual value is

a. the fair value of the asset on the date of acquisition.

b. subtracted from accumulated depreciation to determine the asset's depreciable cost

c. an estimate of the asset's value at the end of its useful life

d. ignored in all the depreciation methods.