1. Beginning Inventory + Purchases =

a) Net Income

b) Cost of Goods Sold

c) Cost of Goods Available

d) Gross Profit

2. Cost of Goods Available minus Ending Inventory equals

a) Cost of Goods Sold

b) Cost of Goods Available

c) Gross Profit

d) Net Income

3. Gross Profit Percentage equals

a) Net Income divided by Sales

b) Gross Profit divided by Sales

c) Cost of Goods Available divided by Sales

d) Cost of Goods Sold divided by Sales

4. FOB Destination - Title Passes

a) Upon Arrival

b) When the contract is signed

c) At the Dock

d) When insurance is purchased

5. A Merchandiser

a) Sells Inventory

b) Makes Things

c) Provides a Service

d) Creates Patents

6. The journal entry when buying inventory is

a) Debit Inventory Credit Sales

b) Debit Sales Credit Inventory

c) Debit Cash Credit Inventory

d) Debit Inventory Credit Cash

7. How many journal entries are made when inventory is sold?

a) 3

b) 2

c) 1

d) 4

8. A possible journal entry made when inventory is sold is

a) Debit Cost of Goods Sold Credit Inventory

b) Debit Accounts Receivable Credit Sales

c) Debit Cash Credit Sales

d) All of these answers