Accounting Test Three

Accounting I - Summer 2009

Test Three

Name Section R-52

The test is designed to be filled in by your computer . You may also print it off , complete , and scan it to a single . You must be able to upload the test to the dropbox area of the class , in either a .doc or .rtf ONLY . The test is due no later than 2 :00

.m . on June 29th .Multiple Choice (15 points ) For each of the following questions , type the letter of your answer in the box to the left of the number

p 1 . The major revenue of a merchandiser is _______ while the major expense (s ) is (are ) _______

a ) sales revenue , cost of goods sold

b ) gross margin , operating expenses

c ) income from operations , cost of goods sold

d ) sales revenue , operating expenses

2 . Sales revenue minus sales returns and allowances and sales discounts equals

a ) gross margin

b ) income from operations

c ) cost of goods sold

d ) net sales

3 . Credit terms are 1 /10 n /30 indicates that the buyer is

a ) allowed a 10 discount if payment is made within 30 days

b ) allowed a 1 discount if payment is made within 10 days

c ) allowed a 1 discount if payment is made within 30 days

d ) allowed a 30 discount if payment is made within 10 days

4 . A company makes a purchase of 2 ,000 of inventory , subject to credit terms of 3 /10 n /45 and returns 500 of...