ACC 557 Week 5 Quiz: Inventory Costing and Financial Transactions

Preview 2 of 5 pages

See the first 2 pages exactly as they appear in the document.

Page 1
Read page 1 as text
ACC 557 Week 5 Quiz: Inventory Costing and Financial Transactions ACC 557 WEEK 5 QUIZ Multiple Choice Question 108 Carter Company sells merchandise on account for $3,000 to Hannah Company with credit terms of 2/10, n/30. Hannah Company returns $450 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Carter Company make upon receipt of the check? Cash 2,550 Accounts Receivable 2,550 Cash 2,940 Sales Discounts 60 Sales Returns and Allowances 450 Accounts Receivable 2,550 Cash 2,499 Sales Returns and Allowances 501 Accounts Receivable 3,000 Cash 2,499 Sales Returns and Allowances 450 Sales Discounts 51 Accounts Receivable 3,000 Multiple Choice Question 82 On November 2, 2012, Kasdan Company has cash sales of $4,500 from merchandise having a cost of $2,700. The entries to record the day's cash sales will include: a $2,700 credit to Cost of Goods Sold. a $4,500 credit to Cash. a $2,700 credit to Inventory. a $4,500 debit to Accounts Receivable. Multiple Choice Question 46 Income from operations is gross profit less operating expenses. financing expenses. other expenses and losses. other expenses. Multiple Choice Question 64 If a company determines cost of goods sold each time a sale occurs, it must have a computer accounting system. uses a combination of the perpetual and periodic inventory systems. uses a perpetual inventory system. uses a periodic inventory system. Multiple Choice Question 89 The collection of a $800 account after the 2 percent discount period will result in a debit to Cash for $784. credit to Accounts Receivable for $800. credit to Cash for $800.
Page 2

3 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.