Navigation » List of Schools » Glendale Community College » Accounting » Accounting 101 – Financial Accounting » Spring 2021 » Chapter 6 Quiz
Below are the questions for the exam with the choices of answers:
Question #1
A Debit Accounts Receivable; credit Sales Revenue.
B Debit Inventory; credit Accounts Receivable.
C Debit Inventory; credit Sales Revenue.
D Debit Sales Revenue; credit Accounts Receivable.
Question #2
A A credit to cost of goods sold for $700.
B A debit to cost of goods sold for $5,800.
C A credit to inventory for $700.
D A debit to inventory for $5,800.
Question #3
A Cost of Goods Sold.
B Inventory.
C Purchases.
D Accounts Payable.
Question #4
A The profitability on sales of inventory during the year.
B The quantity of inventory remaining at the end of the year.
C The number of times the company sells its average inventory balance during the year.
D The average cost at which inventory was purchased during the year.
Question #5
A Average cost.
B Last-in, first-out (LIFO).
C First-in, first-out (FIFO).
D Specific identification.
Question #6
A Overstate cost of goods sold.
B Have no effect on cost of goods sold.
C Not possible to determine with information given.
D Understate cost of goods sold.
Question #7
A Overstate retained earnings.
B Not possible to determine with information given.
C Have no effect on retained earnings.
D Understate retained earnings.
E
Question #8
A No effect on net income or ending inventory.
B Increase in cost of ending inventory.
C Decrease in net income.
D
E Increase in net income.
Question #9
A $17,800
B $8,200
C $22,200
D $20,000
Question #10
A Debit to Cost of Goods Sold.
B Credit to Sales Revenue.
C Credit to Inventory.
D Credit to Inventory, Debit to Cost of Goods Sold and Credit to Sales Revenue.
Question #11
A Items a company intends for sale to customers.
B The cost of goods sold to customers during the year.
C Any assets of the company that can be sold.
D The amount of cash received from the sale of goods to customers during the year.
Question #12
A A company that purchases products that are primarily in finished form for resale to customers.
B A company that produces products from raw materials, labor, and overhead.
C A company that provides services to its customers.
D A company whose revenues exceed expenses.
Question #13
A LIFO.
B FIFO.
C Weighted-average.
D Any assumption can be used regardless of the tax reporting.
Question #14
A 10%
B 25%
C 20%
D 30%
Question #15
A Debit to Cost of Goods Sold.
B Debit to Accounts Receivable.
C Credit to Sales Revenue
D Credit to Sales Revenue, Debit to Cost of Goods Sold and Debit to Accounts Receivable.
Question #16
A Placing all revenues after all expenses.
B Excluding the effects of income taxes in the calculation of net income.
C Placing all revenues before all expenses.
D Separating revenues and expenses based on their different types of activities.
Question #17
A Sales Revenue minus Operating Expenses.
B All revenues minus all expenses.
C Sales Revenue minus Cost of Goods Sold.
D Income before Income Tax Expense.
Question #18
A Income will be the same under each assumption.
B FIFO.
C LIFO.
D Weighted-average.
Question #19
A Income before income taxes.
B Gross profit.
C Net income.
D Operating income.
Question #20
A Sales Revenue minus Cost of Goods Sold.
B Gross Profit minus Operating Expenses.
C All revenues minus all expenses.
D Income before Income Tax Expense.
Question #21
A Debit to Inventory.
B Debit to Cost of Goods Sold.
C Credit to Accounts Payable.
D Credit to Sales Revenue.
Question #22
A Inventory purchases are recorded only at the end of the period.
B Purchase discounts are not recorded.
C Cost of good sold is recorded with a period-end adjusting entry.
D Cost of goods sold is recorded with each sale.
Question #23
A The average amount of sales revenue per unit of inventory sold during the year
B The amount by which the sale of inventory exceeds its cost per dollar of sales.
C The number of days the average inventory is held.
D The number of times the company sells its average inventory balance during the year.
Question #24
A The cost of inventory sold during the year.
B The cost of inventory at the beginning of the year.
C The cost of inventory purchased during the year.
D The cost of inventory not yet sold by the end of the year.
Question #25
A All revenues minus all expenses.
B Gross Profit minus Operating Expenses.
C Sales Revenue minus Cost of Goods Sold.
D Income before Income Tax Expense.
Question #26
A Cost of Goods Sold.
B Purchases.
C Inventory.
D Accounts Payable.