QUESTION 3 0.1 points Save Answer Tony's Market recorded the following events involving a recent purchase of inventory: Received goods for $80,000, terms 2/10, n/30 Returned $1,600 of the shipment for credit. Paid $400 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $76,832. increased by $78,800. increased by $77,224. increased by $77,232 QUESTION 4 0.1 points Save Answer Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account? Freight Expense Freight-In nventory Freight-Out QUESTION5 0.1 points Save Answer Which of the following would not be classified as a contra account? Sales Revenue Sales Returns and Allowances Accumulated Depreciation Sales Discounts QUESTION 6 0.1 points Save Answer Sales revenue less cost of goods sold is called gross profit. net profit Onet income marginal income QUESTION 7 0.1 points Save Answer Financial information is presented below: Operating expenses Sales retums and allowances Sales discounts Sales revenue Cost of goods sold $ 42,000 12,000 3,000 165,000 96,000 The profit margin would be 36. 18 .06. .08 0. QUESTION 9 0.1 points Save Answer When a seller records a return of goods, the account that is credited is Sales Revenue. Sales Returns and Allowances. Inventory. Accounts Receivable. QUESTION 10 0.1 points Save Answer A purchase invoice is a document that provides support for goods purchased for cash. provides evidence of incurred operating expenses. Oprovides evidence of credit purchases. serves only as a customer receipt. QUESTION 11 0.1 points Save Answer A buyer borrows money at 6% interest to pay a $9,000 invoice with terms 1 /10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer's net savings for this total event? $0 $60.00 $61.20 $120.00 QUESTION 12 0.1 points Save Answer Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system? A purchase of merchandise A return of merchandise inventory to the supplier Payment of freight costs for goods shipped to a customer. Payment of freight costs for goods received from a supplier. QUESTION 13 IFRS nventories are defined by IFRS as 0.1 points Save Answer held-for-sale in the ordinary course of business in the process of production for sale in the ordinary course of business. in the form of materials or supplies to be consumed in the production process or in the providing of services. all of these answer choices are correct. QUESTION 14 0.1 points Save Answer In a perpetual inventory system, cost of goods sold is recorded on a daily basis. on a monthly basis. on an annual basis. each time a sale occurs QUESTION 15 0.1 points Save Answer The collection of a $500 account beyond the 2 percent discount period will result in a debit to Cash for $490. debit to Accounts Receivable for $500. debit to Cash for $500. debit to Sales Discounts for $10. QUESTION 16 0.1 points Save Answer For a jewelry retailer, which is an example of Other Revenues and Gains? Repair revenue Unearned revenue Gain on sale of display cases Discount received for paying for merchandise inventory within the discount period QUESTION 17 0.1 points Save Answer The operating expenses section of an income statement for a merchandising company would not include Freight-out. Utilities expense Cost of goods sold. Insurance expense QUESTION 18 0.1 points Save Answer Piper Company sells merchandise on account for $1,800 to Morton Company with credit terms of 2/10, n/30 Morton Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Piper Company make upon receipt of the check? a. Cash 1,200 Accounts Receivable 1,200 b. Cash Sales Retums and Allowances Accounts Receivable 1,176 624 1.800 c. Cash Sales Retums and Allowances Sales Discounts 1.176 600 24 Accounts Receivable 1,800 d. Cash 1,764 36 Sales Discounts Sales Retums and Allowances Accounts Receivable 600 1,200 QUESTION 19 0.1 points Save Answer Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Inventory account. the Purchases account. the Supplies account. the Cost of Goods Sold account. QUESTION 20 0.1 points Save Answer As the president of Harter Company, you notice that no discounts have been taken when settling accounts payables. What would be an acceptable explanation? All invoices have credit terms of n/30. There is not sufficient cash to pay within the discount period. Discounts are missed because no one knows how to enter them in the new accounting software. The full amount of the invoice is being paid within the discount period and the treasurer is pocketing the discount amount. QUESTION 21 0.1 points Save Answer A company shows the following balances: Sales Revenue Sales Returms and Allowances Sales Discounts Cost of Goods Sold S00,000 75,000 25,000 490,000 What is the gross profit rate? 6196 70% 30% 39% QUESTION 22 IFRS Comprehensive income under IFRS 0.1 points Save Answer includes unrealized gains and losses included in net income, in contrast to GAAP includes unrealized gains and losses included in net income, similar to GAAP excludes unrealized gains and losses included in net income, in contrast to GAAP. excludes unrealized gains and losses included in net income, similar to GAAP. QUESTION 23 0.1 points Save Answer The respective normal account balances of Sales, Sales Returns and Allowances, and Sales Discounts are credit, credit, credit. debit, credit, debit. credit, debit, debit. credit, debit, credit. QUESTION 24 0.1 points Save Answer If Indiana Ink, Inc. has net sales of $400,000 and cost of goods sold of $320,000, Indiana Ink's gross profit rate is 80%. 25%. 20%. o 100%. QUESTION 25 0.1 points Save Answer Under the perpetual inventory system, in addition to making the entry to record a sale, a company would debit Inventory and credit Cost of Goods Sold debit Cost of Goods Sold and credit Purchases. O debit Cost of Goods sold and credit Inventory. make no additional entry until the end of the period