1. When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is:

2. If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as

3. When the perpetual inventory system is used, the inventory sold is debited to

4. Multiple-step income statements show

5. Ending inventory is made up of the oldest purchases when a company uses

6. The statement of owner's equity shows

7. Calculate income from operations for Jonas Company based on the following data:

Sales $764,000

Operating expenses 52,500

Cost of Merchadise sold 538,000

8. When merchandise sold is assumed to be in the order in which the purchases were made, the company is using

9. The inventory costing method that reports the earliest costs in ending inventory is

10. What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?

11. When the perpetual inventory system is used, the inventory sold is shown on the income statement as

12. Merchandise inventory is classified on the balance sheet as a

13. Calculate the gross profit for Jefferson Company based on the following:

Sales $764,000

Selling expenses 45,500

Cost of merchandise sold 538,000

14. The entry to record the return of merchandise from a customer would include a

15. Which of the following accounts has a normal debit balance?

16. Cost flow is in the order in which costs were incurred when using

17. Gross profit is equal to

18. During times of rising prices, which of the following is not an accurate statement?

19. Which of the following accounts has a normal credit balance?

20. Which account is not classified as a selling expense?

21. Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a

22. Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a

23. Where are selling and administrative expenses found on the multiple-step income statement?

24. President's salaries, depreciation of office furniture, and office supplies are

25. The arrangements between buyer and seller as to when payments for merchandise are to be made are called

26. Inventory shrinkage is recorded when

27. If the cost of an item of inventory is $60 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market is

28. Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a

29. Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $15,000. Emma Co. prepaid the $750 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period?

30. Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as

31. The Corbit Corp. sold merchandise for $10,000 cash. The cost of the mercahdise sold was $7,590. The journal entries to record this transaction under perpetual inventory system would be

32. During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is

33. Using the following information, what is the amount of net income?

Peruchases 32,000 Selling expense 960 Merchandise inventory 5,700 Merchandise inventory 6,370 Sept 1 Sept 30 Admin Expense 910 Sales 63,000 Rent Revenue 1,200 Intdrest Expense 1,040

34. Generally, the revenue account for a merchandising business is entitled

35. In credit terms of 3/15, n/45, the "3" represents the

36. Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does pierce make to record this sale?

37. The inventory system employing accounting records that continuously disclose the amount of inventory is called

38. The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

39. IF the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as

40. The following lots of particualr commodity were available for sale during the year: Beginning inventory 10 units at $30 Fist Purchase 25 units at $32 Second Purchase 30 units at $34 Third Purchase 10 units at $35 The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the FIFO method?

41. If the physical count of inventory revealed $158,000 of merchandise on hand and the invetory records reported $163,000, what would be the necessary adjusting entry to record inventory shirinkage?

42. When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit

43. The inventory costing method that reports the most current prices in the ending inventory is

44. When comparing a retial business to a service business, the financial statement that changes the msot is the

45. The tow most widely used methods for determining the cost of inventory are