Quiz ACCT 512: Collection of an $800 Account & Computation

School: Azusa Pacific University - Course: ACCT 512 - Subject: Accounting

Week 3: Quiz ACCT 512 Question 1 0 / 1 pts The collection of an $800 account beyond the 2 percent discount period will result in a debit to Cash for $784. Correct Answer credit to Accounts Receivable for $800. credit to Cash for $800. You Answered debit to Sales Discounts for $16. $800 - $0 = $800 Question 2 1 / 1 pts Financial information is presented below: Operating expenses$ 40,000 Sales revenue200,000 Cost of goods sold150,000 Gross profit would be $160,000. $ 40,000. Correct! $ 50,000. $200,000 - $150,000 = $50,000 (Sal. rev. - COGS) $ 10,000. Question 3 1 / 1 pts When using a periodic inventory system, which statement concerning the computation of cost of goods sold is correct? Correct! The amount of ending inventory is determined on the last day of the accounting period. Cost of goods available for sale includes net purchases plus the ending inventory. Purchases represent cash paid for purchases during the accounting period. Freight-in is ignored. Question 4 1 / 1 pts Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller. Correct! True False Question 5 1 / 1 pts Gross profit rate is computed by dividing the cost of goods sold by net sales. True Correct! False Question 6 1 / 1 pts The amount of cost of good available for sale during the year depends on the amounts of beginning merchandise inventory and cost of goods sold. beginning merchandise inventory, the net cost of purchases, and ending merchandise inventory. beginning merchandise inventory, cost of goods sold and ending merchandise inventory. Correct! beginning merchandise inventory and net costs of purchases. Question 7 1 / 1 pts Sales revenue is only earned during the period in which the cash is collected from the buyer. True Correct! False Question 8 1 / 1 pts Ramos Company receives a payment on account from Martinez Industries. Based on the original sale of $12,000 using the periodic inventory approach, Ramos honors the 3% cash discount and records the payment. Which of the following is the correct entry for Ramos to record? a.Cash11,640 Sales Discounts360 Inventory12,000 b.AccountsReceivable 12,000 Cash7,840 PurchaseDiscounts 160 c.Cash11,640 Sales Discounts360 AccountsReceivable 12,000 d.Cash11,640 PurchaseDiscounts 360 AccountsPayable12,000

a b Correct! c $12,000 × .03 = $360 sales discount (Sale amount × .03) = sal. dis. d Question 9 1 / 1 pts Sales revenue less cost of goods sold is called Correct! gross profit. net profit. net income. marginal income. Question 10 1 / 1 pts When using the periodic system the physical inventory count is used to determine only the sales value of goods in the ending inventory. both the cost of the goods in ending inventory and the sales value of goods sold during the period. Correct! both the cost of the goods sold and the cost of ending inventory. only the cost of merchandise sold during the period.