1. Which of the following expressions is incorrect? a. Gross profit - Operating expenses - Net...

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1. Which of the following expressions is incorrect? a. Gross profit - Operating expenses - Net income b. Sales revenue - cost of goods sold - Operating expenses = Net income c. Net income + Operating expenses - Gross profit d. Operating expenses - Cost of goods sold - Gross profit 2. If a purchaser using a perpetual inventory system pays the transportation costs, then the a. Inventory account is increased. b. Inventory account is not affected. c. Freight-Out account is increased. d. Delivery Expense account is increased. 3. The entry to record a sale of $1,800 with terms of 2/10, n/30 will include a a. debit to Sales Discounts for $36. b. debit to Sales Revenue for $1,764. c. credit to Accounts Receivable for $1,800. d. credit to Sales Revenue for $1,800. 1. Which of the following expressions is incorrect? a. Gross profit - Operating expenses - Net income b. Sales revenue - cost of goods sold - Operating expenses = Net income c. Net income + Operating expenses - Gross profit d. Operating expenses - Cost of goods sold - Gross profit 2. If a purchaser using a perpetual inventory system pays the transportation costs, then the a. Inventory account is increased. b. Inventory account is not affected. c. Freight-Out account is increased. d. Delivery Expense account is increased. 3. The entry to record a sale of $1,800 with terms of 2/10, n/30 will include a a. debit to Sales Discounts for $36. b. debit to Sales Revenue for $1,764. c. credit to Accounts Receivable for $1,800. d. credit to Sales Revenue for $1,800.

Answer rating: 100% (QA)

Answer Q1 Option d is correct Operating expenses cost of goods sold Gross profit ... View the full answer