ACC 290 Week 3 Practice Quiz

ACC 290 Week 3 Practice Quiz

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ACC 290 Week 3 Practice Quiz

Complete the Week 1 Practice Quiz in WileyPLUS

Practice Question 01

The operating cycle of a merchandising company is ordinarily shorter than that of a service company.

True

False

Practice Question 05

The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm.

has fewer steps than

longer than

the same as

shorter than

Practice Question 24

Which statement is true when recording the sale of goods for cash in a perpetual inventory system?

Only one journal entry is necessary. It will record the receipt of cash and sales revenue.

Two journal entries are necessary: one to record the receipt of cash and reduction of inventory, and one to record the the cost of goods sold and sales revenue.

Two journal entries are necessary: one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and to reduce inventory.

Only one journal entry is necessary. It will record cost of goods sold and reduce of inventory.

Practice Question 29

Net income is $15,000, operating expenses are $20,000, and net sales total $75,000. How much is cost of goods sold?

$40,000

$15,000

$35,000

$60,000

Practice Question 34

Which one of the following will result in gross profit?

Sales revenue less cost of goods sold

Operating expenses less cost of goods sold

Operating expenses less net income

Sales revenue less operating expenses

Practice Question 39

Under what system is cost of goods sold determined at the end of an accounting period?

Double entry inventory system

Single entry inventory system

Perpetual inventory system

Periodic inventory system

Practice Question 45

Net income is $15,000, operating expenses are $20,000, net sales total $75,000, and sales revenues total $95,000. How much is the profit margin?

75%

79%

20%

16%

Practice Question 57

In a periodic inventory system, when is the cost of the merchandise sold determined?

At the time of the sale

At the end of the period

Periodically during the period

Either at time of sale, end of period or periodically during the period

Question 5

Waymon Co. has net sales of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit?

Gross profit

$

Question 6

Masie Ascot believes revenues from credit sales may be recorded before they are collected in cash. Do you agree? Explain.