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BS,MBA, PHD
Adelphi University/Devry
Apr-2000 - Mar-2005
HOD ,Professor
Adelphi University
Sep-2007 - Apr-2017
ACC 100 Unit 3 Milestone Sophia course
1
Â
Â
Based on this information, which of the following is the Cost of Goods Purchased?
Â
$27,500
Â
Â
$37,500
Â
Â
$15,500
Â
Â
$18,500
Â
Expanded Income Statement
2
Â
Â
Using the LIFO method and the information in this image, what is the Cost of Goods Sold during December?
Â
$60,000
Â
Â
$105,000
Â
$95,000
Â
Â
$80,000
Â
Â
LIFO
3
Adam has 40 T-8 light fixtures that he purchased for $12 each and 240 T-5 light fixtures that he purchased for $16 each on the floor of his lighting supply store. He also has 80 T-8 fixtures and 120 T-5 fixtures in his warehouse.
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What is the unit cost of the light fixtures if Adam implements the weighted average inventory valuation method?
Â
$12.00
Â
$13.00
Â
$16.00
Â
$15.00
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Weighted Average Method
4
Acme Furniture purchased 10 desks for $100 each and paid the invoice in full within 20 days, which reduced the price of each desk to $90.Â
Â
Which of the following amounts would be recorded in the purchases account of Acme Furniture?
Â
$100
Â
$900
Â
$1,000
Â
$200
Â
Merchandising: Purchases, Sales, Discounts, Returns and Allowance
5
Â
Â
Given the information in the partial income statement below, what is the cost of goods sold?
Â
$53,500
Â
$68,000
Â
$50,000
Â
$45,500
Â
Expanded Income Statement
6
Â
Â
Given the information above, what is the Gross Profit?
Â
$578,200
Â
$445,500
Â
$486,300
Â
$419,200
Â
Merchandising Financial Statement Analysis
7
Â
Â
Which inventory method was used to calculate cost of goods sold, based on the information above?
Â
Weighted average
Â
Specific ID
Â
LIFO
Â
FIFO
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Inventory Cost Flow Assumptions
8
Brett agreed to the freight on board (FOB) destination method for an order of t-shirts that is ready to ship. The freight is in New York, at the port of distribution, to be delivered to Brett's clothing store in Pennsylvania.
Â
Who owns the freight at the loading docks in New York?
Â
Brett
Â
The shipping company
Â
The supplier
Â
Brett's customer
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Merchandising
9
Which of the following statements descries periodic inventory?Â
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Computerized calculation of goods sold updated in real time
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Physical inventory count and calculation of goods sold updated in real time
Â
Computerized calculation of goods sold done at the end of the period
Â
Physical inventory count and calculation of goods sold done at the end of the period
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Inventory Accounting Methods
10
Â
Â
Based on the information in the expanded income statement below, which of the following is the total of the Goods Available for Sale?
Â
$35,000
Â
Â
$37,000
Â
Â
$72,000
Â
$47,000
Â
Â
Expanded Income Statement
11
This month, Julia paid $2.50 each for 125 dog collars. She sold 72 dog collars for $5.95 each.Â
Â
What is Julia's cost of goods sold for this month?
Â
$180.00
Â
$428.40
Â
$312.50
Â
$215.00
Â
Merchandising
12
Â
Â
Compute the correct Cost of Goods Sold in September using the FIFO method, based on the information in the table above.
Â
$2,630
Â
$1,805
Â
$3,910
Â
$1,865
Â
FIFO
13
Susan's Stationery sold goods that cost $42,000, and had expenses that totaled $5,600. The average stock of goods in a year ending December 31 was $7,500.
Â
What is Susan’s Stationery inventory turnover ratio in a year ending December 31?
Â
7.50
Â
4.67
Â
6.25
Â
5.60
Â
Merchandising Financial Statement Analysis
14
An expanded income statement is generally divided by the different categories of expenses.
Â
The most common categories are __________.
Â
sales expenses and general expenses
Â
sales expenses and general and admin expenses
Â
sales expenses and general and admin revenues
Â
sales revenues and general and admin expenses
Â
Expanded Income Statement
15
Ann bought three sweaters online. Each of the sweaters was normally priced at $75. She received a sales discount for paying for her sweaters in full within 10 days. She ultimately paid $180 for all three.Â
Â
Which discount percentage did she receive?
Â
10%
Â
25%
Â
20%
Â
5%
Â
Merchandising: Purchases, Sales, Discounts, Returns and Allowance
16
Which one of the businesses below would most likely use the FIFO method of inventory valuation?
Â
A car dealership
Â
A jewelry store
Â
An art gallery
Â
A grocery store
Â
Inventory Cost Flow Assumptions
17
Which business below uses a perpetual inventory method?
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An antique shop
Â
A pet food store
Â
A boat store
Â
A car dealership
Â
Inventory Accounting Methods
18
Which of the following scenarios would use a purchases subsidiary ledger?
Â
Trudy wants to know which suppliers have raised their prices in the past year.
Â
John wants to identify his top 20 customers.
Â
Ann Marie wants to determine whether to extend more credit to a customer.
Â
Maybelle wants to know which customers have been late on their payments.
Â
Sales & Purchases Subsidiary Ledger
1
Which business below uses a perpetual inventory method?
Â
An antique shop
Â
Â
A pet food store
Â
Â
A boat store
Â
Â
A car dealership
Â
Â
Inventory Accounting Methods
2
Which one of the businesses below would most likely use the FIFO method of inventory valuation?
Â
A grocery store
Â
Â
A jewelry store
Â
Â
A car dealership
Â
Â
An art gallery
Â
Â
Inventory Cost Flow Assumptions
3
If Kevin purchased 175 candles at $3 each and sold 90 candles for $7 each, which of the following is his cost of goods sold?Â
Â
$735
Â
Â
$525
Â
Â
Â
Â
$270
Â
Â
$630
Â
Â
Â
Â
Merchandising
4
Adam has 40 T-8 light fixtures that he purchased for $12 each and 240 T-5 light fixtures that he purchased for $16 each on the floor of his lighting supply store. He also has 80 T-8 fixtures and 120 T-5 fixtures in his warehouse.
Â
What is the unit cost of the light fixtures if Adam implements the weighted average inventory valuation method?
Â
$15.00
Â
Â
$16.00
Â
Â
$12.00
Â
Â
$13.00
Â
Â
Weighted Average Method
5
Charlie's order of shoes is the freight at the manufacturer's warehouse in Hong Kong, and he has agreed to the FOB shipping point method.Â
Â
Who owns the freight when the shoes are at the Hong Kong loading docks, ready to be shipped to New York?
Â
Charlie
Â
Â
Â
Â
The shipping company
Â
Â
Â
Â
Charlie’s customer
Â
Â
The supplier
Â
Â
Â
Â
Merchandising
6
Vern uses a perpetual inventory method at his store. This means that purchases are debited to his merchandise inventory.
Â
Which of the following is credited to his merchandise inventory?
Â
Net sales
Â
Â
Cost of goods sold
Â
Â
Purchase returns
Â
Â
Owner’s equity
Â
Â
Inventory Accounting Methods
7
Â
Â
Given the information provided above, what is the gross margin percentage?
Â
79%
Â
Â
83%
Â
Â
71%
Â
Â
73%
Â
Â
Merchandising Financial Statement Analysis
8
In 2011, Matt's hunting store sold goods that cost $89,000, and had expenses that totaled $12,000. His average stock of goods during 2011 was $45,000.
Â
Which of the following is Matt’s hunting store inventory turnover ratio in 2011?
Â
3.75
Â
Â
Â
Â
1.71
Â
Â
Â
Â
6.42
Â
Â
1.98
Â
Â
Â
Â
Merchandising Financial Statement Analysis
9
Â
Â
Which inventory method was used to calculate cost of goods sold, based on the information above?
Â
FIFO
Â
Â
Specific ID
Â
Â
Weighted average
Â
Â
LIFO
Â
Â
Inventory Cost Flow Assumptions
10
Which of the following scenarios would use a purchases subsidiary ledger?
Â
Trudy wants to know which suppliers have raised their prices in the past year.
Â
Â
Ann Marie wants to determine whether to extend more credit to a customer.
Â
Â
Maybelle wants to know which customers have been late on their payments.
Â
Â
John wants to identify his top 20 customers.
Â
Â
Sales & Purchases Subsidiary Ledger
11
Â
Â
Based on this information in this partial income statement, what is the total of the Goods Available for Sale?
Â
$90,000
Â
Â
Â
Â
$65,300
Â
Â
Â
Â
$87,800
Â
Â
Â
Â
$83,000
Â
Â
Expanded Income Statement
12
An expanded income statement is generally divided by the different categories of expenses.
Â
The most common categories are __________.
Â
sales revenues and general and admin expenses
Â
Â
sales expenses and general and admin expenses
Â
Â
sales expenses and general and admin revenues
Â
Â
sales expenses and general expenses
Â
Â
Expanded Income Statement
13
Which of the following is the additional percentage that a shoe store discounted the price of a pair of boots that were originally priced at $175, marked down to $125, and finally sold for $100?
Â
30%
Â
Â
15%
Â
Â
Â
Â
20%
Â
Â
Â
Â
25%
Â
Â
Merchandising: Purchases, Sales, Discounts, Returns and Allowance
14
Anne Marie went to a merchandisers' market on January 6th and purchased 25 coffee tables at $62 each. The terms of payment of the invoice were 2% 10, Net 30. When she returned to her office on January 10th, she wrote out and mailed a check to pay the invoice.
Â
What amount will Anne Marie record in her purchases account?
Â
$1,519
Â
Â
$1,804
Â
Â
$1,835Â
Â
Â
$1,550
Â
Â
Merchandising: Purchases, Sales, Discounts, Returns and Allowance
15
Â
Â
Using the FIFO method and the information in this image, what is the Cost of Goods Sold during December?
Â
$80,000
Â
Â
$95,000
Â
Â
$65,000
Â
Â
$60,000
Â
Â
FIFO
16
Â
Â
Given the information below, which of the following is the Total Cost of Goods Sold?
Â
$78,900
Â
Â
$81,100
Â
Â
$80,600
Â
Â
$81,300
Â
Â
Expanded Income Statement
17
Â
Â
Using the LIFO method and the information in this image, what is the Cost of Goods Sold during December?
Â
$60,000
Â
Â
Â
Â
$95,000
Â
Â
Â
Â
$80,000
Â
Â
Â
Â
$105,000
Â
Â
LIFO
18
Â
Â
Based on this information, which of the following is the Cost of Goods Purchased?
Â
$27,500
Â
Â
Â
Â
$37,500
Â
Â
Â
Â
$15,500
Â
Â
Â
Â
$18,500
Â
Â
Expanded Income Statement
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