- Description
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.