ACCT 212 Week 4 Quiz ( 100% Correct Solutions)

Question 1
pts
(TCO 4) The financial statements of a merchandising company will show



the same accounts as the financial statements of a service company.



gross profit after net income on the income statement.
Correct!


inventory as a current asset on the balance sheet.



cost of goods sold as an operating expense on the income statement.
See Chapter 6.


Question 2
pts
(TCO 4) Another term for gross profit is



gross income.



gross sales.
Correct!


gross margin.



gross operating income.
See Chapter 6.


Question 3
pts
(TCO 4) A periodic inventory system




This study source was downloaded by 100000801755870 from CourseHero.com on 04-03-2022 16:36:15 GMT -05:00


https://www.coursehero.com/file/36245410/Week-4-Acct-212-Quizdocx/

, is used for inexpensive goods.



is not expensive to maintain.



does not keep a running record of inventory on hand.
Correct!


is all of the above.
See Chapter 6.


Question 4
pts
(TCO 4) All of the following costs would be included in inventory except for

You Answered


freight-in.
Correct Answer


income taxes.



taxes paid on the purchase price.



insurance while in transit.
See Chapter 6.


Question 5
pts
(TCO 4) ABC Auto Sales sells new Lexus vehicles. ABC will most likely use the _____ method to cost its
ending inventory.



first-in, first-out




This study source was downloaded by 100000801755870 from CourseHero.com on 04-03-2022 16:36:15 GMT -05:00


https://www.coursehero.com/file/36245410/Week-4-Acct-212-Quizdocx/