Question 11 Gross profit is equal to 2 pts sales plus cost of merchandise sold. sales plus selling expenses. sales less selling expenses. C sales less cost of merchandise sold. Question 12 2 pts Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the invoice within the discount period. What is the amount of sales from the above transactions? $25,500 I $26,010 c $24,990 c $16.000 Question 13 2 pts The inventory data for an item for November are as follows: Nov. 1 Inventory 20 units at $19 4 Sale 10 units 10 Purchase 30 units at $20 17 Sale 20 units 30 Purchase 10 units at $21 Using a perpetual system, what is the cost of merchandise sold for November if the company uses FIFO? $610 $600 $590 S580 Use the information below to answer the following questions. Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Units Date May 3 10 Blankets Purchase Cost $20 5 Sale 3 17 10 24 20 Purchase Sale Sale Purchase 23 30 6 3 10 30 Question 14 2 pts Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the LIFO inventory cost method. $136 c $144 $180 $120 2 pts Question 15 The cash account in the company's ledger is a(n) asset with a normal debit balance. asset with a normal credit balance. liability with a normal debit balance c liability with a normal credit balance. Question 16 2 pts Journal entries based on the bank reconciliation are required in the company's accounts for outstanding checks. deposits in transit c bank errors. book errors 2 pts Question 17 The receivable that is usually evidenced by a formal, written instrument of credit is a(n) trade receivable. note receivable. accounts receivable income tax receivable. 2 pts Question 18 If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? c Uncollectible Accounts Expense Accounts Receivable Allowance for Doubtful Accounts Interest Expense Question 19 A capital expenditure results in a debit to an) 2 pts expense account capital account liability account asset account. Question 20 2 pts The proper journal entry to purchase a computer costing $975 on account to be utilized within the business would be which of the following? Office Supplies Accounts Payable 975 975 Office Equipment Accounts Payable 975 975 Office Supplies Accounts Receivable 975 975 Office Equipment 975 Accounts Receivable 975
