Wholesalers 37 Multiple Choice 8 01:28:19 0 Buy products from manufacturers and sell to retailer O Buy products from other wholesalers and sell to consumers O Buy products from manufacturers and sell to and sell to consumers 37 0 Buy products 2 01:28:10 from manufacturers and sell to consumers OBuy products from retailers and sell to consumers All of the above Gross profit is 38 Multiple Choice 8 01:28:03 The same as profit Subtracted from operating income to get profit O Net sales less cost of goods sold 38 Net sales less cost of goods sold 8 01:27:55 O A special general ledger account Only calculated when using the perpetual inventory system Cost of goods sold is 39 Multiple Choice 8 01:27:46 O Another term for net sales O The term used for the cost of buying and preparing merchandise O An operating expense 39 used for the cost of buying and preparing merchandise 8 01:27:37 An operating expense O ALSO called gross margin O The cost of goods sold to customers 40 Z-Mart had sales of $500,100. Cost of goods sold was $143,400. What is the gross profit? 01:27:29 Multiple Choice O $216,600 $217,100 $356,700 $503,900 Multiple Choice 40 O $216,600 01:27:20 O $217,100 O $356,700 O $503,900 O $213,300 41 Z-Mart had sales of $572,300. Gross profit was $239,106. What is the cost of goods sold? 2 01:27:07 Multiple Choice O $279,194 $333,194 O $360,194 O $81,406 Multiple Choice 41 $279,194 8 01:26:58 $333,194 $360,194 $811, 406 O $40,088 Merchandise inventory is 42 Multiple Choice 01:26:50 O Reported on the balance sheet under plant and equipment Products a company owns for resale to customers Reported on the Products 42 company owns for resale to customers 8 01:26:36 Reported on the income statement as an expense Includes supplies Included on a service company's balance sheet 43 The operating cycle of a merchandising company 8 01:26:25 Multiple Choice O Begins with the purchase of merchandise Ends with the collection of cash from the sale of merchandise o Varies among types of cash from the sale of merchandise 43 O Varies 8 01:26:17 among types of businesses O Applies to both cash and credit sales All of the above Merchandise inventory 44 Multiple Choice 8 01:26:07 O Is a capital asset Is a current asset Can include supplies O Is a type of long-term asset 44 O Is a current asset 8 01:25:59 O Can include supplies O Is a type of long-term investment Is an expense 45 The cash sales operating cycle moves from 8 01:25:49 Multiple Choice O Purchases to inventory for sale to cash sales Purchases to inventory for sale to accounts receivable to cash sales o Inventory 45 for sale to cash sales to purchases 8 01:25:32 Accounts receivable to purchases to inventory for sale to cash sales 0 Accounts receivable to inventory for sale to cash sales A periodic inventory system 46 Multiple Choice 2 01:13:07 Requires updating the inventory account every month Records the cost of new merchandise purchased in a permanent account Does not account 46 Does not require a physical count of inventory 01:12:58 O Records the cost of new merchandise purchased in a temporary account All of the above A perpetual inventory system 47 Multiple Choice 8 01:12:49 O Gives a continuous record of the amount of inventory on hand o Uses a Purchases account for the cost of new merchandise purchased Was 47 O Was historically used by companies that sold large quantities of low- value items 01:12:41 O Is not widely used in practice O All of the above A periodic inventory system 48 Multiple Choice 8 01:12:33 Gives more timely information O Is widely used in practice O Was historically used by companies that sold large 48 Was historically used by companies that sold large quantities of low- value items 01:12:20 Provides point of sale data O Does not use a Purchases account Sales returns and allowances 49 Multiple Choice 8 01:11:54 o provide information about dissatisfied customers and the possibility of lost future sales O Are usually recorded in separate contra- revenue accounts Are omitted from published statements Represent a reduction of the customer's account receivable All of the above 50 The normal balance of the following accounts is a debit 8 01:11:29 Multiple Choice Sales discounts and interest revenue Sales returns and allowances and purchase discounts. Sales returns and allowances, cost of goods sold Transportation- in and income summary Cost of goods sold, and purchase discounts