) The gross margin percentag gross margin divided by net sales revenu c gross margin plus net sales revenue d gross margin times net sales revenue 2) An tem is considered material in the same industry b itsdelar value is greater than 10% of net ncome . itis uted for using a treatment hat is not normally allowed by generally accepted change a ts inclusion in the financial statements would cause a statement user to decision 3) The time span during which cash is used to acquire goods and services, and these goods and services are sold to customers, who in turn pay for their purchases a. operating b cash-to-cash cycle c cash-to-cash cycle d accounting cycle with cash, is called the cycle. 4) When prices are falling, the cost of goods sold reported on the income statement on a weighted average basis is generally a. equally likely to be higher or lower on a weighted-average basis as opposed to a FIFO equal to ending inventory reported on a FIFO basis. c. greater than on a FIFO basis d. lower than on a FIFO basis 5 5) The end-of-month balance in Dryer Company's cash receipts journal cash column is $22,630 How will this column be posted? a. The total will be posted to the cash account as a credit The total will be posted to the cash account as a debit C. The individual amounts are posted on a daily basis. d. The total is not posted 6) A purchase return or allowance under a perpetual inventory system is credited to a Accounts Payable. b. Returns and Allowances Inventory d. Purchases 7) The a Cost principle Recognition criteria for revenue. 8) The concept that requires period for unpaid wages is the that accountants accrue wage expense at the end of the accounting Recognition criteria for revenue. c. 9) Customers' individual accounts Included Accounts Receivable account in the: in a subsidiary ledger are said to be controlled by the b. accounts receivable ledger C. ledger d. general ledger e. None of the above are correct 10) Cost of goods sold plus ending inventory equals: a. net purchases. b. cost of goods available for sale. C. Credit to accounts payable d. gross margin. e. gross profit 11) Which of the following is not one of the purposes of internal control? a. to encourage employees to follow company policy b. to safeguard the company's assets c. to guarantee that a business makes a profit d. to ensure accurate, reliable accounting records 12) Amounts are posted individually from the purchases journal to the: a. cash account in the general ledger. b. inventory account in the general ledger c. accounts payable account in the general ledger. d. accounts payable subsidiary ledger. e. none of the above are correct