FINANCIAL ACCOUNTING TEST #2 QUESTIONS AND CORRECT ANSWERS ALREADY GRADED A+

FINANCIAL ACCOUNTING TEST #2
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+
After gross profit is calculated, operating expenses are deducted to determine



a) net income

b) gross profit on sales

c) gross margin

d) net margin

-✔Correct answer -a) net income



Cleese Company sells merchandise on account for $5,000 to Langston Company
with credit terms of 2/10, n/30. Langston Company returns $1,000 of merchandise
that was damaged, along with a check to settle the account within the discount
period. What is the amount of the check?



a) 4,000

b) 3,920

c) 4,900

d) 4,920

-✔Correct answer -b) 3,920



A merchandising company using a perpetual system may record an adjusting entry
by

a) debiting Cost of Goods Sold

, FINANCIAL ACCOUNTING TEST #2
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+
b) crediting Income Summary

c) debiting Sales Revenue

d) debiting Income Summary

-✔Correct answer -a) debiting Cost of Goods Sold



If a company has sales revenue of $630,000, net sales of $600,000, and cost of
goods sold of $390,000, the gross profit rate is



a) 35%

b) 38%

c) 65%

d) 62%

-✔Correct answer -a) 35%



Which of the following accounts is not closed to Income Summary?



a) Cost of Goods Sold

b) Inventory

c) Sales Revenue

d) Sales Discounts

-✔Correct answer -b) Inventory