T / F) When companies offer trade discounts, the gross selling price (gross invoice price) at which the sale is recorded is equal to the list price minus any trade discounts.

Select one:

True

False

Question 2

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) Sales discounts arise when the seller offers the buyer a cash discount of 1 percent to 3 percent to induce early payment of an amount due.

Select one:

True

False

Question 3

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) Cost of goods sold = Beginning inventory + Net cost of purchases Ending inventory.

Select one:

True

False

Question 4

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) Beginning inventory + Net cost of purchases = Cost of goods available for sale.

Select one:

True

False

Question 5

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) A classified income statement has four major sectionsoperating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables.

Select one:

True

False

Question 6

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) Non-operating revenues and expenses are revenues and expenses not related to the sale of products or services regularly offered for sale by a business.

Select one:

True

False

Question 7

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) The two basic methods for estimating uncollectible accounts under the allowance method are the percentage-of-cost of sales method and the percentage-of-receivables method.

Select one:

True

False

Question 8

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) Liabilities result from some past transaction and are obligations to pay cash, provide services, or deliver goods at some time in the future.

Select one:

True

False

Question 9

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) Generally, the lower the accounts receivable turnover, the better; and the shorter the average collection period, the better.

Select one:

True

False

Question 10

Not yet answered

Marked out of 1.00

Flag question

Question text

(T / F) Current liabilities are classified as clearly determinable, estimated, and contingent.

Select one:

True

False