BA 200 Exam 2 Questions and Answers Already Passed
Single-step income statement or Multiple-step income statement:
1.Does not separately report income from operations.
2. Shows detailed computations of net sales and other costs and expenses.
3. Statement limited to two main categories (revenues and expenses).
4.Reports gross profit as a separate line item.
5.Report cost of goos before the reporting of gross profit
6. Reports income from operations equal to gross profit less operating expenses
7. Distinguishes between operating and non-operating items
8. Reports income from operations as a separate line item - Answers 1. Single-step income
statement
2.Multiple-step income statement
3. Single-step income statement
4. Multiple-step income statement
5. MSI
6. MSI
7. MSI
8. MSI
, 1. Matches the cost of items exactly with the revenues they generate.
2. Assigns the lowest amount to cost of goods sold.
3.Yields the lowest net income.
4.Yields the highest net income.
5.Always yields results that depend on which units sold.
6. Tends to smooth out the erratic changes in costs - Answers 1. Specific identification
2. FIFO
3. LIFO
4. FIFO
5. Specific identification
6. Weighted identification
Costs of $7,000 were incurred to acquire goods and make them ready for sale. The goods were
shipped to the buyer (FOB shipping point) for a cost of $400. Additional necessary costs of
$800 were incurred to acquire the goods. No other incentives or discounts were available.
What is the buyer's total cost of merchandise inventory?
$7,400
$8,200
$7,800
$7,000 - Answers $8,200
A company has sales of $695,000 and cost of goods sold of $278,000. Its gross profit equals:
$(417,000).
$695,000.
$278,000.
Single-step income statement or Multiple-step income statement:
1.Does not separately report income from operations.
2. Shows detailed computations of net sales and other costs and expenses.
3. Statement limited to two main categories (revenues and expenses).
4.Reports gross profit as a separate line item.
5.Report cost of goos before the reporting of gross profit
6. Reports income from operations equal to gross profit less operating expenses
7. Distinguishes between operating and non-operating items
8. Reports income from operations as a separate line item - Answers 1. Single-step income
statement
2.Multiple-step income statement
3. Single-step income statement
4. Multiple-step income statement
5. MSI
6. MSI
7. MSI
8. MSI
, 1. Matches the cost of items exactly with the revenues they generate.
2. Assigns the lowest amount to cost of goods sold.
3.Yields the lowest net income.
4.Yields the highest net income.
5.Always yields results that depend on which units sold.
6. Tends to smooth out the erratic changes in costs - Answers 1. Specific identification
2. FIFO
3. LIFO
4. FIFO
5. Specific identification
6. Weighted identification
Costs of $7,000 were incurred to acquire goods and make them ready for sale. The goods were
shipped to the buyer (FOB shipping point) for a cost of $400. Additional necessary costs of
$800 were incurred to acquire the goods. No other incentives or discounts were available.
What is the buyer's total cost of merchandise inventory?
$7,400
$8,200
$7,800
$7,000 - Answers $8,200
A company has sales of $695,000 and cost of goods sold of $278,000. Its gross profit equals:
$(417,000).
$695,000.
$278,000.
