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