The credit terms of a sale are normally indicated on a

The credit terms of a sale are normally indicated on a




Question 1.1. The credit terms of a sale are normally indicated on a(n) (Points : 2)
       purchase order.
       invoice.
       bill of lading.
       account receivable.

Question 2.2. The difference between sales and cost of merchandise sold for a merchandising business is (Points : 2)
       sales.
       net sales.
       gross sales.
       gross profit.

Question 3.3. Multiple-step income statements show: (Points : 2)
       gross profit but not income from operations.
       neither gross profit nor income from operations.
       both gross profit and income from operations.
       income from operations but not gross profit.

Question 4.4. Sometimes a(n) __________ is offered to buyers as a means of encouraging them to pay before the end of the credit period. (Points : 2)
       accounts receivable
       credit card
       sales discount
       cash sale

Question 5.5. Since merchandise inventory is normally sold within a year, how is it reported on the balance sheet? (Points : 2)
       As a revenue
       As the cost of merchandise sold
       It does not appear on the Balance Sheet
       As a current asset

Question 6.6. NBC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $18,000 in operating expenses, and $2,000 in other income. What is NBC Company’s gross profit? (Points : 2)
       $17,000
       $3,000
       $1,000
       ($1,000)

Question 7.7. Generally, the revenue account for a merchandising business is entitled (Points : 2)
       Sales.
       Net Sales.
       Gross Sales.
       Gross Profit.

Question 8.8. Which of the following would be subtracted from gross profit to reach operating income? (Points : 2)
       Operating expenses
       Other expenses
       Income taxes
       All of these

Question 9.9. Multiple-step income statements show (Points : 2)
       gross profit but not net income.
       neither gross profit nor net income.
       gross profit but not cost of merchandise sold.
       gross profit, cost of merchandise sold, income from operations, and net income.

Question 10.10. Inventory shortage is recorded when (Points : 2)
       merchandise is returned by a buyer.
       merchandise purchased from a seller is incomplete or short.
       merchandise is returned to a seller.
       there is a difference between a physical count of inventory and inventory records.

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