Question 1 A company can appropriately record revenue when legal title to goods has passed to the consumer True False 2 points Question 2 Net sales is an approximate measure of the assets flowing into a company from its customers True False 2 points Question 3 A sales invoice for $1,000 was dated October 4 and carried cash discount terms of 2 10, n 30 How much cash will be received if the invoice is paid on October 13 A $ 960 B $ 980 C $1,000 D $1,020 2 points Question 4 Gross sales, less sales discounts and sales returns and allowances, is equal to net sales True False 2 points Question 5 Office supplies being used in business would be carried as merchandise inventory of an automobile dealership True False 2 points Question 6 Sales Discounts is a contra revenue account True False 2 points Question 7 Interest expense and interest revenue should be shown under the A Operating Expenses section B Operating Revenues section C Cost of Goods Sold section D Non operating Revenues and Expenses section 2 points Question 8 A sales discount of 2 10, n 30 means that a 10 percent discount is granted if the invoice is paid in two days, but the entire balance is due in 30 days True False 2 points Question 9 Cynthia Company had sales of $3,000 for cash and $5,000 on account How would these sales be recorded in the journal A Debit Cash for $3,000 and Sales for $5,000 and credit Accounts Receivable for $8,000 B Debit Cash for $3,000 and Net Sales for $5,000 and credit Accounts Receivable for $8,000 C Debit Sales for $8,000 and credit Cash for $3,000 and Accounts Receivable for $5,000 D Debit Cash for $3,000 and Accounts Receivable for $5,000 and credit Sales for $8,000 2 points Question 10 On November 4, a sale of $1,000 of merchandise was made to a customer on account, with terms of 1 10, n 30 On November 6 the customer returned $200 of merchandise as defective and was given credit What entry would be used to record receipt of payment by the customer on November 10 A Cash 800 Accounts Receivable 800 B Cash 792 Sales Discounts 8 Accounts Receivable 800 C Cash 790 Sales Discounts 10 Accounts Receivable 800 D Cash 800 Sales Discounts 200 Accounts Receivable 1,000 2 points Question 11 Only when legal title to goods passes to the customer can the seller appropriately A record the expense B record the revenue C reduce the liability, Accounts Payable D ship the goods to the customer 2 points Question 12 Net sales revenue is equal to A Revenues Sales Discounts Sales Returns and Allowances B Sales Sales Discounts Trade discounts Sales Returns and Allowances C Sales Sales Discounts Sales Returns and Allowances D Sales Sales Discounts Sales Returns and Allowances 2 points Question 13 If the purchase price of a product sold by Nesbit Co rose steadily during the year, the cost of the ending inventory would be greater under LIFO than FIFO True False 2 points Question 14 Clancey Corporation had an inventory per books of $39,200 at year end It took a physical count of inventory and found $33,600 of goods on hand at cost What is the amount of inventory loss that should be recorded A $ 5,600 B $33,600 C $ 8,400 D $39,200 2 points Question 15 A perpetual inventory system provides better control over inventory items than a periodic inventory system True False 2 points Question 16 The inventory turnover ratio is equal to A Average inventory divided by sales B Cost of goods sold divided by average inventory C Average inventory divided by cost of goods sold D Sales divided by average inventory 2 points Question 17 The lower of cost or market (LCM) method for pricing ending inventory can be applied using A either the unit or the total inventory basis B either the class or the total inventory basis C either the unit or the class basis D either the unit, class, or total inventory basis 2 points Question 18 Merchandise inventory is a current asset on the balance sheet of a merchandising company True False 2 points Question 19 Inventories should be recorded at cost unless market value is lower True False 2 points Question 20 Under a perpetual inventory system, the Merchandise Inventory account is updated at the time of each sale or purchase True False 2 points Question 21 The specific identification method's advantages include the company's ability to use this method with A little concern for actual prices paid for purchases B items of high value with unique characteristics like automobiles C basically identical units D no concern that income will be manipulated 2 points Question 22 Which of the following statements is true When the general price level is rising, the inventory on the balance sheet at the end of the year would A be lower under the weighted average method than under the LIFO method B be higher under the FIFO method than under the LIFO method C be lower under the FIFO method of costing than under the LIFO method D more nearly approximate current replacement cost under LIFO than under FIFO 2 points Question 23 Under FIFO, costs flow through the company as if the oldest goods were the first goods sold True False 2 points Question 24 Generally, inventory cost would include all costs necessary to get goods ready for sale True False 2 points Question 25 During several years of constantly rising prices, the Stetson Company used the LIFO method of inventory valuation, the Mott Company used the FIFO method of inventory valuation, and the Smith Company used the weighted average method of inventory valuation In which company would the balance sheet figure for inventory be closer to the current replacement cost of the merchandise on hand A Stetson Company B Smith Company and Mott Company would be similar in this regard C Mott Company D Smith Company 2 points Question 26 In The Profit's Inventory clips video, how much waste does Unique Salon have in waste monthly 5 10 15 20 2 points Question 27 In The Profit's Inventory clips video, the new inventory system at Unique Salon writes down products that are used and also scans the products for re ordering True False 2 points Question 28 In The Profit's Inventory clips video, Worldwide Trailers is missing how much in inventory $50,000 $80,000 $100,000 $0 2 points Question 29 In The Profit's Inventory clips video, Marcus' theory on inventory is that if it doesn't sell, it's gotta go True False 2 points Question 30 In The Profit's Inventory clips video, which company doesn't put product on the shelf because the product disappears and there is no inventory system in place Worldwide Trailers Coffee Fred's Unique Salon 2 points Save and Submit Click Save and Submit to save and submit Click Save All Answers to save all answers

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

Question 1 A company can appropriately record revenue when legal title to goods has passed to the consumer. True False 2 points Question 2 Net

Question 1

A company can appropriately record revenue when legal title to goods has passed to the consumer.

True

False

2 points

Question 2

Net sales is an approximate measure of the assets flowing into a company from its customers.

True

False

2 points

Question 3

A sales invoice for $1,000 was dated October 4 and carried cash discount terms of 2/10, n/30. How much cash will be received if the invoice is paid on October 13?

	A.	$ 960
	B.	$ 980
	C.	$1,000
	D.	$1,020

2 points

Question 4

Gross sales, less sales discounts and sales returns and allowances, is equal to net sales.

True

False

2 points

Question 5

Office supplies being used in business would be carried as merchandise inventory of an automobile dealership.

True

False

2 points

Question 6

Sales Discounts is a contra revenue account.

True

False

2 points

Question 7

Interest expense and interest revenue should be shown under the:

	A.	"Operating Expenses" section.
	B.	"Operating Revenues" section.
	C.	"Cost of Goods Sold" section.
	D.	"Non operating Revenues and Expenses" section.

2 points

Question 8

A sales discount of 2/10, n/30 means that a 10 percent discount is granted if the invoice is paid in two days, but the entire balance is due in 30 days.

True

False

2 points

Question 9

Cynthia Company had sales of $3,000 for cash and $5,000 on account. How would these sales be recorded in the journal?

	A.	Debit Cash for $3,000 and Sales for $5,000 and credit Accounts Receivable for $8,000.
	B.	Debit Cash for $3,000 and Net Sales for $5,000 and credit Accounts Receivable for $8,000.
	C.	Debit Sales for $8,000 and credit Cash for $3,000 and Accounts Receivable for $5,000.
	D.	Debit Cash for $3,000 and Accounts Receivable for $5,000 and credit Sales for $8,000.

2 points

Question 10

On November 4, a sale of $1,000 of merchandise was made to a customer on account, with terms of 1/10, n/30. On November 6 the customer returned $200 of merchandise as defective and was given credit. What entry would be used to record receipt of payment by the customer on November 10?

Cash	800
Accounts Receivable		800

Cash	792
Sales Discounts	8
Accounts Receivable		800

Cash	790
Sales Discounts	10
Accounts Receivable		800

Cash	800
Sales Discounts	200
Accounts Receivable		1,000

2 points

Question 11

Only when legal title to goods passes to the customer can the seller appropriately:

	A.	record the expense.
	B.	record the revenue.
	C.	reduce the liability, Accounts Payable.
	D.	ship the goods to the customer.

2 points

Question 12

Net sales revenue is equal to:

	A.	Revenues + Sales Discounts - Sales Returns and Allowances.
	B.	Sales - Sales Discounts - Trade discounts - Sales Returns and Allowances.
	C.	Sales - Sales Discounts + Sales Returns and Allowances.
	D.	Sales - Sales Discounts - Sales Returns and Allowances.

2 points

Question 13

If the purchase price of a product sold by Nesbit Co. rose steadily during the year, the cost of the ending inventory would be greater under LIFO than FIFO.

True

False

2 points

Question 14

Clancey Corporation had an inventory per books of $39,200 at year-end. It took a physical count of inventory and found $33,600 of goods on hand at cost. What is the amount of inventory loss that should be recorded?

	A.	$ 5,600
	B.	$33,600
	C.	$ 8,400
	D.	$39,200

2 points

Question 15

A perpetual inventory system provides better control over inventory items than a periodic inventory system.

True

False

2 points

Question 16

The inventory turnover ratio is equal to:

	A.	Average inventory divided by sales.
	B.	Cost of goods sold divided by average inventory.
	C.	Average inventory divided by cost of goods sold.
	D.	Sales divided by average inventory.

2 points

Question 17

The lower-of-cost-or-market (LCM) method for pricing ending inventory can be applied using:

	A.	either the unit or the total inventory basis.
	B.	either the class or the total inventory basis.
	C.	either the unit or the class basis.
	D.	either the unit, class, or total inventory basis.

2 points

Question 18

Merchandise inventory is a current asset on the balance sheet of a merchandising company.

True

False

2 points

Question 19

Inventories should be recorded at cost unless market value is lower.

True

False

2 points

Question 20

Under a perpetual inventory system, the Merchandise Inventory account is updated at the time of each sale or purchase.

True

False

2 points

Question 21

The specific identification method's advantages include the company's ability to use this method with:

	A.	little concern for actual prices paid for purchases.
	B.	items of high value with unique characteristics like automobiles.
	C.	basically identical units.
	D.	no concern that income will be manipulated.

2 points

Question 22

Which of the following statements is true? When the general price level is rising, the inventory on the balance sheet at the end of the year would:

	A.	be lower under the weighted-average method than under the LIFO method.
	B.	be higher under the FIFO method than under the LIFO method.
	C.	be lower under the FIFO method of costing than under the LIFO method.
	D.	more nearly approximate current replacement cost under LIFO than under FIFO.

2 points

Question 23

Under FIFO, costs flow through the company as if the oldest goods were the first goods sold.

True

False

2 points

Question 24

Generally, inventory cost would include all costs necessary to get goods ready for sale.

True

False

2 points

Question 25

During several years of constantly rising prices, the Stetson Company used the LIFO method of inventory valuation, the Mott Company used the FIFO method of inventory valuation, and the Smith Company used the weighted-average method of inventory valuation. In which company would the balance sheet figure for inventory be closer to the current replacement cost of the merchandise on hand?

	A.	Stetson Company
	B.	Smith Company and Mott Company would be similar in this regard.
	C.	Mott Company
	D.	Smith Company

2 points

Question 26

In The Profit's Inventory clips video, how much waste does Unique Salon have in waste monthly?

	5%
	10%
	15%
	20%

2 points

Question 27

In The Profit's Inventory clips video, the new inventory system at Unique Salon writes down products that are used and also scans the products for re-ordering.

True

False

2 points

Question 28

In The Profit's Inventory clips video, Worldwide Trailers is missing how much in inventory?

	$50,000
	$80,000
	$100,000
	$0

2 points

Question 29

In The Profit's Inventory clips video, Marcus' theory on inventory is that "if it doesn't sell, it's gotta go."

True

False

2 points

Question 30

In The Profit's Inventory clips video, which company doesn't put product on the shelf because the product disappears and there is no inventory system in place?