The asset section of a classified balance sheet includes

	a.	Current liabilities, long-term investments, property, plant and equipment, and intangible assets.
	b.	Current assets, long-term investments, property, plant and equipment, and intangible assets.
	c.	Current assets, long-term investments, property, plant and equipment, and withdrawals.
	d.	Current assets, liabilities, property, plant and equipment, and intangible assets.
	e.	Current assets, non-current assets, equity, and intangible assets.

Current liabilities become due

	a.	Within one year
	b.	Within the operating cycle of a business
	c.	When bills have to be paid
	d.	A or B, whichever is longer
	e.	All of these

The ending balance of owner's capital is calculated as

	a.	Owner's capital account balance minus loss plus the withdrawals account balance
	b.	Profit minus the withdrawals account balance
	c.	Assets plus liabilities
	d.	Owner's capital account balance plus profit minus the withdrawals account balance
	e.	None of these answers is correct.

Z-Mart purchased $3,000 worth of merchandise on credit. Transportation costs were an additional $100, paid cash to the cartage company on delivery. Z-Mart returned $300 worth of merchandise and paid the invoice on time, and took a 2% purchase discount. The amount of this payment was

	a.	$3100
	b.	$2700
	c.	$3000
	d.	$2646
	e.	$2900

Classified multiple-step income statements

	a.	Do not report gross profit
	b.	Are required for the perpetual system
	c.	Are required by Canada Revenue Agency
	d.	Are generally used for internal reporting
	e.	List cost of goods sold as an operating expense

Gross profit is derived from

	a.	Sales
	b.	Ending inventory
	c.	Beginning inventory
	d.	Cost of goods sold
	e.	All of the above

The difference between a company's gross profit on sales and total operating expenses is

	a.	Profit
	b.	Net sales
	c.	Income summary
	d.	Income from operations
	e.	Net loss

The first step in preparing the multi-step income statement is to find

	a.	Gross profit
	b.	Operating loss
	c.	Net sales
	d.	Operating income
	e.	Profit

A car dealership has a used truck on its lot that it bought for $10,000 and is selling it for $20,000. The rate of markup on cost is

	a.	50%
	b.	20%
	c.	100%
	d.	30%
	e.	None of these answers is correct.

percentage markup on cost is

	a.	46.0%
	b.	30.2%
	c.	43.2%
	d.	185.3%
	e.	None of these answers is correct.