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ACC 255 - Exam 2 Actual Questions And Correct Answers Guaranteed Success.

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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...

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  • September 19, 2024
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ACC 255 - Exam 2

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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