Question

"Y" Company began the accounting period with $60,000 of merchandise, and net cost of purchases was $240,000. A physical inventory showed $72,000 of merchandise unsold at the end of the period. The cost of goods sold of Y Company for the period is:

Select one:

a. $300,000.

b. $228,000.

c. $252,000.

d. $168,000.

e. None of the above.

Question 2

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A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be:

Select one:

a. $1,200.

b. $200.

c. $240.

d. $1,000.

e. $3,600.

Question 3

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On a sales invoice, "2/10, n/30" means

Select one:

a. Pay the invoice by February 10, or November 30th.

b. If paid within 2 days, take a cash discount of 10%. Otherwise, the full amount is due within 30 days.

c. Nothing. Things like that are usually typos.

d. If paid within 10 days, take a cash discount of 2%. Otherwise, the full amount is due within 30 days.

e. Pay for two items within 10 days, and the remaining items (n) within 30 days.

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The major differences between unclassified and classified income statements are

Select one:

a. A classified income statement only has two categories—revenues and expenses. An unclassified income statement divides both revenues and expenses into operating and non-operating items.

b. An unclassified income statement is made available to the public, while a classified income statement is private.

c. None of these.

d. An unclassified income statement only has two categories—revenues and expenses. A classified income statement divides both revenues and expenses into operating and non-operating items.

e. There is no real difference. The terminology depends upon the company's industry classification.

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Gross margin percentage is calculated by

Select one:

a. (Gross margin divided by Net inventory turnover)*100.

b. None of these.

c. (Net cost of sales divided by Net Sales)*100.

d. (Gross margin divided by Net sales)*200

e. ((Gross margin minus non-operating expenses) divided by Gross Sales).