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