ACC 255 - Exam 2 Actual Questions And Correct Answers Guaranteed Success.
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Course
ACC.
Institution
ACC.
Earnings per share is: - correct answer a measure of net income earned on each share of common stock.
Working capital is: - correct answer current assets less current liabilities.
All of the following are current assets except:
accounts receivable
cash
patents
marketable securi...
Earnings per share is: - correct answer a measure of net income earned on each share of common
stock.
Working capital is: - correct answer current assets less current liabilities.
All of the following are current assets except:
accounts receivable
cash
patents
marketable securities - correct answer patents
The current ratio is a: - correct answer liquidity ratio.
Under the perpetual inventory system, purchases of merchandise for sale are recorded inan account
called: - correct answer Inventory.
A purchaser, dissatisfied with merchandise received, may return the goods to the seller for credit. This
transaction is known, by the seller, as a: - correct answer Sales Return.
In a periodic inventory system, the cost of goods sold is determined: - correct answer At the end of
the accounting period.
Freight costs incurred by the seller on outgoing merchandise are considered: - correct answer
Operating expenses to the seller
If a sales invoice shows credit terms of 2/10, n/30, the discount period is: - correct answer 10 days.
, The revenue recognition principle requires that sales revenues be recognized: - correct answer When
the goods are transferred from the seller to the buyer.
Sales Returns and allowances and sales discounts are: - correct answer Contra revenue accounts
The income statement of a merchandising comany contain the following unique features: - correct
answer Sales revenue, cost of goods sold, and gross profit.
What is: A detailed inventory system in which the cost of each invewntory item is maintained and the
rcords continuously show the inventory that should be on hand. - correct answer Perpetual
Inventory.
What is: A reduction given by a seller for prompt payment of a credit sale. - correct answer Sales
Discount.
What is: measures the percentage of each dollar of sales that results in net income, computed by
dividing net income by net sales. - correct answer Profit Margin.
What is: The total cost of merchandise sold during hte period. - correct answer Cost of Good Sold
What is: An inventory system in which detailed records are not maintained and the cost of goods sold is
determined only at the end of an accounting period. - correct answer Periodic Inventory.
What is: Sales less sales returns and allowances and sales discounts. - correct answer Net sales.
What is: Primary source of revenue for a medrchandising company. - correct answer Sales Revenue
What is: The excess of net sales over the cost of goods sold. - correct answer Gross Profit.
What is: A cash discount cliamed by a buyer for prompt payment of a balance due. - correct answer
Purchase discount.
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