Under the pepetual inventory method, an entry to record a sales return also includes which of the following?

a. debit C/G/S, credit inventory

b. debit inventory, credit C/G/S

c. debit C/G/S, credit purchases

d. debit purchases, credit C/G/S

Which financial statement shows revenue and expenses?

	a.	statement of owner's equity
	b.	balance sheet
	c.	income statement
	d.	trial balance

1 points

1. Gross Profit Margin equals

   	a.	Gross Profit divided by Gross Sales
   	b.	Net Profit divided by Net Sales
   	c.	Net Profit divided by Net Sales
   	d.	Gross Profit divided by Net Sales

1 points

QUESTION 4

1. Every control account must have its own

   	a.	general ledger
   	b.	general journal ledger
   	c.	control ledger
   	d.	subsidiary ledger

1 points

QUESTION 5

1. During the closing process for a merchandising company, the income summary account is credited for

   	a.	sales discount
   	b.	sales
   	c.	inventory
   	d.	freight out

1 points

QUESTION 6

1. The trial balance is prepared from

   	a.	ending balances in the general journal
   	b.	ending balances in the general ledger
   	c.	transactions during the year
   	d.	beginning balances in the general ledger

1 points

QUESTION 7

1. In what journal does the buyer of merchandise report the transaction?

   	a.	cash receipts journal
   	b.	purchase journal
   	c.	sales journal
   	d.	cash disbursements journal

1 points

QUESTION 8

1. Which financial statement uses the basic accounting equation?

   	a.	income statement
   	b.	balance sheet
   	c.	statement of owner's equity
   	d.	trial balance

1 points

QUESTION 9

1. What is C/G/S?

   	a.	the cost of operating expenses
   	b.	another term for net sales
   	c.	the cost of inventory purchased
   	d.	the cost of inventory sold

1 points

QUESTION 10

1. What is the definition of a liability?

   	a.	unearned revenue
   	b.	economic obligations of the business
   	c.	all are liabilities
   	d.	debts owed by the business