Sold inventory for $14,000 (COGS $7000); terms 1/10, n/30 FOB Shipping Point

Dr. AR/Cr. Revenue; Dr. COGS/Cr. Inventory

Buys from manufacturers; sells to reatilers

2/15, n/30 is read as...

2% discount paid in 15 days; or net 30 days

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Merch. Business

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Grade 11 Accounting (BAF3M) - Inventory

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Questions 15

Answers

1
The inventory system that keeps an ongoing count of inventory is?
Both
Perpetual
Periodic
2
Which of the following is NOT a merchandising business?
National Sports
Walmart
No Frills
Expedia.ca
3
Gross Profit =
COGS - Sales
Sales - Expenses
Net Profit
Sales - COGS
4
COGS =
Beg Inv - Purch - End Inv
Beg Inv + Purch + End Inv
Beg Inv + Purch - End Inv
Beg Inv - Purch + End Inv
5
A physical count of inventory to calculate "Shrinkage" is needed because?
Deterioration of Inventory
Broken Inventory
Theft
All of the above
6
If someone returns your merchandise (you sold them) in a perpetual system you would ?
dr sales returns & allowances
cr purchase returns and allowances
dr inventory
cr inventory
7
Which of the following is not a contra account?
Inventory
Returns/Allowances
Accum. Depreciation
Sales Discounts
8
Sold inventory for $14,000 (COGS $7000); terms 1/10, n/30 FOB Shipping Point
Dr. AP/Cr. Revenue; Dr. COGS/Cr. Inventory
Dr. AR/Cr. Revenue
Dr. AR/Cr. Revenue; Dr. COGS/Cr. Inventory
Dr. AP/Cr. Revenue
9
Which inventory system do we use "purchases account"?
Periodic
Perpetual
Platnoic
Plausible
10
Net Profit =
Gross Profit - Expenses
Gross Profit
Sales - COGS
COGS - Expenses
11
One advantage of the periodic sytsem is that it ______________.
Requires more transactions and accounts
Keeps track of inventory
is cheaper to use
Allows inventory to become unadjusted
12
A merchandise business earns revenue from selling:
Services
Nothing
Inventory
13
A wholesaler
Buys from consumers; sells to retailers
Buys from retailers; sells to consumers
Sells to manufcturers
Buys from manufacturers; sells to reatilers
14
2/15, n/30 is read as...
2% discount paid in 15 days; or net 30 days
15% discount paid in 2 days; or net 30 days
Feb 15th; net 30
$2 discount paid in 15 days; net 30 days
15
Which of the following is NOT a temporary account?
Cash
COGS
Sales Discount
Rent Expense

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