ACCT 2301 EXAM 2 QUESTIONS AND ANSWERS SOLVED CORRECTLY LATEST UPDATE

ACCT 2301 EXAM 2 QUESTIONS AND ANSWERS SOLVED CORRECTLY LATEST UPDATE cost of goods sold (c.o.g.s) - Answers total cost of merchandise sold during the period; an expense account and will get closed at the end of the period beginning inventory + cost of goods purchases = net purchases + freight ------------------------------------------ goods available for sale ( ending inventory ) ------------------------------------------ cost of goods sold perpetual inventory system - Answers companies keep detailed records of the cost of each inventory purchase and sale showing the inventory that should be on hand for every item periodic inventory system - Answers companies do not keep detailed inventory records of the goods on hand throughout the period; instead, they determine the C.O.G.S only at the end of the period purchase invoice - Answers d: inventory c: accounts payable fob destination - Answers seller pays for the freight cost d: freight out c: cash fob shipping point - Answers buyer pays for the freight cost d: inventory c: cash purchase returns and allowances - Answers d: accounts payable c: inventory purchase discounts - Answers if paid by certain date and received discount: d: accounts payable c: cash c: inventory if paid fully without discount: d: accounts payable c: cash recording a sale in perpetual inventory system - Answers d: accounts receivable c: sales revenue d: cost of goods sold c: inventory sales returns and allowances - Answers contra-revenue account d: sales returns and allowances c: accounts receivable d: inventory c: cost of goods sold sales discounts - Answers d: cash d: sales discounts c: accounts receivable net sales - Answers sales revenue (sales returns and allowances) (sales discounts) -------------------------------------------- actual merchandise inventory adjustment - Answers d: cost of goods sold c: inventory closing entries - Answers d: revenues c: income summary d: income summary c: expenses d: income summary c: retained earnings d: retained earnings c: dividends multiple step income statement - Answers distinguishes between operating and nonoperating activities sales sales revenue (sales returns and allowances) (sales discounts) ------------------------------------------------ net sales (cost of goods sold) ------------------------------------------------ gross profit operating expenses salaries and wages utilities