I need help with the following questions for accouting

10/16/2015 Quiz: QUIZ CH 5 & 7 QUIZ CH 5 & 7 Started: Oct 16 at 10:48pm Quiz Instructions Question 1 0.5 pts Merchandising business income statements show neither gross profit nor income from operations income from operations but not gross profit both gross profit and net income gross profit but not income from operations Question 2 0.5 pts Merchandise inventory is classified on the balance sheet as a Current Liability Investment Current Asset LongTerm Liability Question 3 0.5 pts A perpetual inventory system constantly shows the balance of inventory on hand is often used in service type businesses constantly shows the amount of sales for the year is only useful if inventory levels are constant Question 4 0.5 pts The journal entry to record a sale would include a credit to Inventory Expense sales revenue Sales Returns https://alamo.instructure.com/courses/942324/quizzes/1214398/take 1/10 10/16/2015 Quiz: QUIZ CH 5 & 7 Gross Profit Question 5 0.5 pts The journal entry to record the cost of goods sold is cost of goods sold, debit merchandise inventory, credit merchandise inventory, debit cost of goods sold, credit cash, debit sales revenue, credit merchandise inventory, debit accounts payable, credit Question 6 0.5 pts Net income plus operating expenses is equal to gross profit cost of goods available for sale net sales cost of goods sold Question 7 0.5 pts The document that requests payment from the buyer is known as a(n) buyer's ticket discount expense invoice "EOM" document Question 8 0.5 pts Freight on purchased inventory should be treated as a(n) unearned revenue delivery expense cost of inventory discount item https://alamo.instructure.com/courses/942324/quizzes/1214398/take 2/10 10/16/2015 Quiz: QUIZ CH 5 & 7 Question 9 0.5 pts In credit terms of 1/10, n/30, the "1" represents the number of days in the discount period full amount of the invoice number of days when the entire amount is due percent of the cash discount Question 10 0.5 pts The revenue account to record a sale for a merchandising business is entitled Net Sales Gross Profit Gross Sales Sales Revenue Question 11 0.5 pts When purchases of merchandise inventory are made for cash, the transaction would be recorded with the following entry debit Merchandise Inventory credit Purchases debit Cash credit Merchandise Inventory debit Merchandise Inventory credit Cash debit Merchandise Inventory credit Cash Discounts Question 12 0.5 pts What is the term applied to the excess of net sales over the cost of merchandise sold? net income income from operations gross profit gross sales Question 13 https://alamo.instructure.com/courses/942324/quizzes/1214398/take 0.5 pts 3/10 10/16/2015 Quiz: QUIZ CH 5 & 7 If the title (ownership) to merchandise inventory passes to the buyer at the seller's loading dock, delivery terms are stated as FOB shipping point FOB buyer FOB n/30 FOB destination Question 14 0.5 pts If the seller is taking responsibility for delivering merchandise to the buyer, the delivery terms are stated as FOB n/30 FOB seller FOB shipping point FOB destination Question 15 0.5 pts Freight charges added to invoices are not eligible for discounts not something the purchaser has to pay usually only included if the purchaser is picking the merchandise up eligible for discounts if stated separately on the invoice Question 16 0.5 pts When goods are returned to the seller there are two parts to the seller's entry: Part 1 is sales returns and allowances, debit accounts receivable, credit Part 2 is accounts receivable, debit sales returns and allowances, credit cost of goods sold, debit merchandise inventory, credit merchandise inventory, debit cost of goods sold, credit miscellaneous expense, debit cash, credit Question 17 https://alamo.instructure.com/courses/942324/quizzes/1214398/take 0.5 pts 4/10 10/16/2015 Quiz: QUIZ CH 5 & 7 When goods are damaged but will not be returned. The seller will record the damage allowance that is agreed to with which of the following journal entries? sales returns and allowances, debit accounts payable, credit merchandise inventory, debit: cash, credit sales returns and allowances, debit account receivable, credit no entry is required Question 18 0.5 pts Trade Discounts can be thought of as discounts on transportation the same as purchase discounts discounts from retail list prices or wholesale pricing the same as purchase discounts Question 19 0.5 pts If payment is made within the credit terms on the invoice, the journal entry that the purchaser of merchandise inventory make will include a credit to savings from a quick pay accounts payable merchandise inventory delivery expense Question 20 0.5 pts The purchaser of a merchandise inventory item would make a journal entry to record the transaction that includes a debit to accounts receivable merchandise inventory accounts payable cash Question 21 0.5 pts It is important to recognize that for every merchandise inventory transaction between two businesses there is accounting to be done for the buyer and the https://alamo.instructure.com/courses/942324/quizzes/1214398/take 5/10 10/16/2015 Quiz: QUIZ CH 5 & 7 buyer's cell phone company none of these seller retail customer Question 22 0.5 pts In a merchandising business, which of the following would be closed to income summary at the end of the fiscal year? dividends gross profit cost of goods sold net sales Question 23 0.5 pts The MultiStep Income Statement for a merchandising company subdivides operation expenses into: sales and expenses cost of goods sold and gross profit long term and short term selling expenses and administrative expenses Question 24 0.5 pts Procedures and processes used to safeguard assets would be part of a company's none of these customer service department sales department internal control Question 25 0.5 pts Assuring that employees and managers comply with regulations and laws is an objective of first come first serve internal certification external communications https://alamo.instructure.com/courses/942324/quizzes/1214398/take 6/10 10/16/2015 Quiz: QUIZ CH 5 & 7 internal control Question 26 0.5 pts Which of the following should not be considered cash or a cash equivalent by an accountant? U.S government securities bank checking accounts certificates of deposit postage stamps Question 27 0.5 pts At a theater, how good of an idea would it be to have the same person be the ticket seller as well as the ticket taker? bad idea good idea so so none of these Question 28 0.5 pts A check drawn by a depositor for $180 in payment of a liability was recorded in error in the journal as $810. This item would be included on the bank reconciliation as a(n) addition to the balance per the depositor's records deduction from the balance per the bank statement addition to the balance per the bank statement deduction from the balance per the depositor's records Question 29 0.5 pts A bank reconciliation should be prepared periodically because any differences between the depositor's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected the bank must make sure that its records are correct the depositor's records and the bank's records are in agreement the bank has not recorded all of its transactions https://alamo.instructure.com/courses/942324/quizzes/1214398/take 7/10 10/16/2015 Quiz: QUIZ CH 5 & 7 Question 30 0.5 pts The bank reconciliation is part of the internal control system is for information purposes only is sent to the bank for verification should be prepared by an employee who records cash transactions Question 31 0.5 pts Journal entries based on the bank reconciliation are required in the depositor's accounts for book errors deposits in transit bank errors outstanding checks Question 32 0.5 pts Accompanying the bank statement was a bank service charge. On the bank reconciliation, the item is a deduction from the balance per the books a deduction from the balance per bank statement an addition to the balance per the books an addition to the balance per bank statement Question 33 0.5 pts Accompanying the bank statement was information about a shortterm note collected by the bank for the depositor (the company). This item is a(n) addition to the balance per bank statement deduction from the balance per bank statement deduction from the balance per depositor's records addition to the balance per depositor's records https://alamo.instructure.com/courses/942324/quizzes/1214398/take 8/10 10/16/2015 Quiz: QUIZ CH 5 & 7 Question 34 0.5 pts The amount of deposits in transit that are not included on the bank statement is a(n) deduction from the balance per bank statement addition to the balance per depositor books addition to the balance in the bank section deduction from the balance per the depositor's books Question 35 0.5 pts The amount of the outstanding checks is included on the bank reconciliation as a(n) deduction from the balance per depositor's records addition to the balance per depositor's records deduction from the balance in the bank section addition to the balance in the bank section Question 36 0.5 pts Nonsufficient funds checks and electronic funds transfers are examples of information that will be on the books that the bank statement does not show outstanding checks information that will be on the bank statement that the books did not know about deposits in transit Question 37 0.5 pts In a bank reconciliation, the amounts added and subtracted from the cash balance according to the books must be journalized and posted must be called in to the bank should be considered and then a letter to the bank would be justified are useful but no further action is required Question 38 0.5 pts The journal entry required for outstanding checks would be https://alamo.instructure.com/courses/942324/quizzes/1214398/take 9/10 10/16/2015 Quiz: QUIZ CH 5 & 7 cash, debit accounts receivable, credit bank service charge, debit cash, credit no journal entry is required insurance expense, debit prepaid insurance, credit Question 39 0.5 pts The journal entry to record a bank collection of a note is cash, debit note receivable, credit bank charge, debit accounts receivable, credit no entry required note receivable, debit cash, credit Question 40 0.5 pts On a bank statement, the notation NSF means not sure feature in transit bank putting money into the account....no need to call no signal found not sufficient funds...bounced check from customer No new data to save. 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