1. Net Profit Margin equals

   	a.	net income divided by gross sales
   	b.	gross margin divided by net sales
   	c.	net income divided by net sales
   	d.	gross margin divided by gross sales

1 points

QUESTION 12

1. With the terms 2/10, n30, what does the 2 represent?

   	a.	discount period
   	b.	discount amount
   	c.	credit period
   	d.	credit amount

1 points

QUESTION 13

1. In what journal does a seller of merchandise report the transaction?

   	a.	sales journal
   	b.	cash disbursements journal
   	c.	purchase journal
   	d.	cash receipts journal

1 points

QUESTION 14

1. What is the definition of an asset?

   	a.	has a quantifiable value
   	b.	anything of value owned by a business
   	c.	anything with future benefit to the business
   	d.	all are assets

1 points

QUESTION 15

1. Recording entries with at least one debit and one credit is referred to as

   	a.	compound entry
   	b.	double-entry
   	c.	complex entry
   	d.	multiple entry

1 points

QUESTION 16

1. The importance of closing entries is to

   	a.	assist in financial statement preparation
   	b.	set temporary account balances to zero to start fresh next year
   	c.	update accounts in the general ledger
   	d.	set real account balances to zero to start fresh next year

1 points

QUESTION 17

1. What is footing?

   	a.	totaling across several columns of numbers
   	b.	totaling debits
   	c.	totaling a column of numbers
   	d.	totaling credits

1 points

QUESTION 18

1. The process that begins with recording business transactions into a journal and ends with completion of financial statements is referred to as the:

   	a.	business cycle
   	b.	fiscal year
   	c.	calendar year
   	d.	accounting cycle

1 points

QUESTION 19

1. When using a subsidiary ledger, the A/R and A/P accounts in the general ledger are called

   	a.	master accounts
   	b.	payables accounts
   	c.	control accounts
   	d.	receivables accounts

1 points

QUESTION 20

1. What is the purpose of the subsidiary ledger?

   	a.	to show the detail of a control account balance
   	b.	all are true
   	c.	to prove the balance in the control account
   	d.	to show who owes how much