71.Under a periodic inventory system, the accounts Purchases, Purchases Returns and Allowances, PurchasesDiscounts, and Freight-In are found on the balance sheet.
a.True
b.False
72.Merchandise inventory is classified on the balance sheet as a
a.current liability
b.current asset
c.long-term asset
d.long-term liability
73.Which of the following is
nota difference between a retail business and a service business?
a.in what is sold
b.the inclusion of gross profit on the income statement
c.accounting equation
d.merchandise inventory included on the balance sheet
74.Net income plus operating expenses is equal to
a.cost of merchandise sold
b.cost of merchandise available for sale
c.sales
d.gross profit
75.What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?
a.gross profit
b.income from operations
c.net income
d.gross sales
76.The inventory system employing accounting records that continuously disclose the amount of inventory is called
a.retail
b.periodic
c.physical
d.perpetual
77.Calculate the gross profit for Jefferson Company based on the following:
Sales
|
$764,000
|
Selling Expenses
|
42,500
|
Cost of Merchandise Sold
|
538,000
|
a. $495,500
b. $183,500
c. $721,500
d. $226,000
78.Calculate income from operations for Jonas Company based on the following data:
Sales
|
$764,000
|
Operating Expenses
|
52,500
|
Cost of Merchandise Sold
|
538,000
|
a. $485,500
b. $711,500
c. $173,500
d. $226,000
79.Gross profit is equal to
a.sales plus cost of merchandise sold
b.sales plus selling expenses
c.sales less selling expenses
d.sales less cost of merchandise sold
80.When comparing a retail business to a service business, the financial statement that changes the most is the
a.balance sheet
b.income statement
c.retained earnings statement
d.statement of cash flows