Accounting 100

1 . Referring to Table 1 , what is gross profit (Points : 2 125 ,000 105 ,000 140 ,000 90 ,000

2 . Inventory held by a business is a (n ) _______ and when sold becomes a (n ) _______ (Points : 2

liability , withdrawal

asset , expense

liability , asset

asset , contra asset

3 . Inventory turnover indicates how_______ (Points : 2

A .quickly inventory is received from the supplier after the is placed

B . many days it takes the inventory to travel between the seller 's warehouse and the buyer 's warehouse

C .rapidly inventory

is sold

D . many days it takes from the time an is received to the day it is shipped

4 . Under a perpetual inventory system , the adjusting entry to account for inventory shrinkage would include a_______ (Points : 2

A . credit to miscellaneous expense

B . credit to cost of goods sold

C . credit to inventory

D . debit to miscellaneous expense

5 . Which of the following accounts should be closed to income summary (Points : 2

A .beginning inventory

B .sales returns and allowances

C .owner withdrawals

D .ending inventory

6 . A company makes a purchase of 2 ,000 of inventory , subject to credit terms of 3 /10 n /45 and returns 500 of inventory prior to payment . What is the amount of the payment assuming payment is made within the discount period (Points : 2

A 1 ,500

B 1 ,455

C 1 ,440

D 1 ,560

7 . An effective accounting information system_______ (Points : 2

A . allows employees flexibility in setting the working...