- Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a
| a. | debit to Merchandise Inventory | |
| b. | credit to Accounts Receivable | |
| c. | debit to Sales | |
| d. | credit to Merchandise Inventory |
Answer = d
- If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as
| a. | FOB seller | |
| b. | FOB destination | |
| c. | FOB shipping point | |
| d. | FOB n/30 |
Answer = b
- The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include
| a. | only the list price | |
| b. | the list price plus the sales tax | |
| c. | only the sales tax | |
| d. | the list price less the sales tax |
Answer = b
- Inventory shrinkage is recorded when
| a. | merchandise is returned by a buyer | |
| b. | merchandise purchased from a seller is incomplete or short | |
| c. | merchandise is returned to a seller | |
| d. | there is a difference between a physical count of inventory and inventory records |
Answer = d
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