Chapter 05 – Accounting for Retail Businesses
Copyright Cengage Learning. Powered by Cognero.
Page 31
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–02 – LO: 05–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.17 – Inventories Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:19 PM
DATE MODIFIED:
10/16/2017 4:50 PM
81. Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a
a.
debit to Sales
b.
debit to Inventory
c.
credit to Inventory
d.
credit to Accounts Receivable
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–02 – LO: 05–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.17 – Inventories Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:19 PM
DATE MODIFIED:
10/16/2017 4:50 PM
82. Merchandise is ordered on November 10; the merchandise is shipped by the seller and the invoice is prepared, dated,
and mailed by the seller on November 13; the merchandise is received by the buyer on November 18; the entry is made in
the buyer’s accounts on November 20. The credit period begins with what date?
a.
November 10
b.
November 13
c.
November 18
d.
November 20
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
Copyright Cengage Learning. Powered by Cognero.
Page 32
83. Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account
includes a
a.
credit to Customer Refunds Payable
b.
debit to Inventory
c.
credit to Inventory
d.
debit to Cash
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–02 – LO: 05–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.17 – Inventories Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:19 PM
DATE MODIFIED:
10/16/2017 4:50 PM
84. If merchandise sold on account is returned to the seller, the seller acknowledges the return by issuing a
a.
sales invoice
b.
purchase invoice
c.
credit memo
d.
debit memo
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
85. The arrangements between buyer and seller as to when payments for merchandise are to be made are called
a.
credit terms
b.
net cash
c.
cash on demand
d.
gross cash
ANSWER:
a
POINTS:
1
Chapter 05 – Accounting for Retail Businesses
Copyright Cengage Learning. Powered by Cognero.
Page 36
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–02 – LO: 05–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.04 – Cash vs. Accrual
ACCT.ACBSP.APC.17 – Inventories Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:19 PM
DATE MODIFIED:
10/16/2017 4:50 PM
93. When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a
a.
debit to Inventory; a credit to Cash
b.
debit to Cash; a credit to Inventory
c.
debit to Cash; a credit to Sales
d.
debit to Sales; a credit to Accounts Payable
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
94. When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit
a.
Inventory
b.
Purchases Returns and Allowances
c.
Accounts Payable
d.
Accounts Receivable
ANSWER:
c
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–02 – LO: 05–02
FNMN.WAJO.19.05-APP – LO: 05-APP
Copyright Cengage Learning. Powered by Cognero.
Page 38
97. Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a
a.
debit to Cost of Goods Sold
b.
credit to Accounts Payable
c.
credit to Inventory
d.
credit to Sales
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–02 – LO: 05–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.17 – Inventories Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:19 PM
DATE MODIFIED:
10/16/2017 4:50 PM
98. In recording the cost of goods sold for cash, based on data available from perpetual inventory records, the journal
entry is
a.
debit Cost of Goods Sold; credit Sales
b.
debit Cost of Goods Sold; credit Inventory
c.
debit Inventory; credit Cost of Goods Sold
d.
debit Accounts Receivable; credit Inventory
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.05–02 – LO: 05–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.17 – Inventories Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:19 PM
DATE MODIFIED:
10/16/2017 4:50 PM
99. The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include
a.
only the list price
b.
only the sales tax
c.
the list price plus the sales tax
d.
the list price less the sales tax
ANSWER:
POINTS:
DIFFICULTY: