Sales Revenue$27,000
Sales Returns and Allowances1,000
Sales Discounts500
Cost of Goods Sold12,500
Net sales for the month is
a.$27,000.
b.$26,000.
c.$25,500.
d.$13,000.
127.Maxwell Company's financial information is presented below.
Sales Revenue€ ????Cost of Goods Sold€450,000
Sales Returns and Allowances50,000Gross Profit ????
Net Sales750,000
Sales RevenueGross Profit
a.€800,000€300,000
b.€700,000€300,000
c.€800,000€350,000
d.€700,000€350,000
128.The operating expense section of an income statement for a wholesaler would
not
include
a.freight-out.
b.utilities expense.
c.cost of goods sold.
d.insurance expense.
129.Income from operations will always result if
a.the cost of goods sold exceeds operating expenses.
b.revenues exceed cost of goods sold.
c.revenues exceed operating expenses.
d.gross profit exceeds operating expenses.
130.All of the following items would be reported as other income and expense
except
a.interest expense.
b.casualty losses.
c.dividend revenue.
d.loss from employees' strikes.
131.If a company has net sales of $800,000 and cost of goods sold of $480,000, the gross profit rate is
a.60%.
b.40%.
c.20%.
d.100%.
Sales Revenue¥1,500,000
Sales Returns and Allowances270,000
Sales Discounts30,000
Cost of Goods Sold840,000
What is the gross profit rate?
a.56%
b.70%
c.44%
d.30%
133.The gross profit rate is computed by dividing gross profit by
a.cost of goods sold.
b.net income.
c.net sales.
d.sales revenue.
134.In terms of liquidity, inventory is
a.more liquid than cash.
b.more liquid than accounts receivable.
c.more liquid than prepaid expenses.
d.less liquid than store equipment.
135.On a classified statement of financial position, inventory is classified as
a.an intangible asset.
b.property, plant, and equipment.
c.a current asset.
d.a long-term investment.