Description : In the balance sheet, ending merchandise inventory is reported a. in current assets immediately following accounts receivable. b. in current assets immediately following prepaid expenses. c. in current assets immediately following cash. d. under property, plant, and equipment.
Last Answer : a. in current assets immediately following accounts receivable.
Description : In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.
Last Answer : c. more liquid than prepaid expenses.
Description : To arrive at funds from operation ,non-cash expenses must be added to---------- a) Net profit b) Gross profit c) Operating profit d) None of these
Last Answer : a) Net profit
Description : Increases in current liabilities --------------working capital a) Increase b) Decreases c) Added d) None of these
Last Answer : b) Decreases
Description : Cash from operations is equal to------------------ a) net profit afer tax b) net profit plus increase in current asset c) net profit plus decrease in current liabilities d) net profit plus non-cash expenses plus decrease in current
Last Answer : d) net profit plus non-cash expenses plus decrease in current
Description : Furniture sold for cash -----funds flow a) Increases b) Decreases c) Deducted d) None of these
Last Answer : a) Increases
Description : The current assets should be listed on Cerner's balance sheet in the following order: a. cash, accounts receivable, prepaid insurance, equipment. b. cash, prepaid insurance, supplies, ... receivable, prepaid insurance, supplies. d. equipment, supplies, prepaid insurance, accounts receivable, cash
Last Answer : c. cash, accounts receivable, prepaid insurance, supplies.
Description : When the opening balance of cash and cash equivalent is added to the net increase , the total will be the____________ a) Closing balance of cash b) Closing balance of bank c) Opening balance of bank d) Closing balance of cash and cash equivalent
Last Answer : b) Closing balance of bank
Description : Which of the following is not a cash outflow? A. Increase in Prepaid expenses B. Increase in debtors C. Increase in stock D. Increase in creditors
Last Answer : D. Increase in creditors
Description : Cash flows include a) Cash payments only b) Cash receipts only c) Cash receipts and payments d) Cash and noncash incomes and expenses.
Last Answer : c) Cash receipts and payments
Description : Preliminary expenses written off is-------- a) Cash transaction b) Non-cash transaction c) Credit transaction d) None of the above
Last Answer : b) Non-cash transaction
Description : Increase in current assets-------------working capital a) Increases b) Decreases c) Deducts d) Reduces
Description : With respect to the income statement, a. contra-revenue accounts do not appear on the income statement. b. sales discounts increase the amount of sales. c. contra-revenue accounts increase the amount of operating expenses. d. sales discounts are included in the calculation of gross profit.
Last Answer : d. sales discounts are included in the calculation of gross profit.
Description : Freight costs paid by a seller on merchandise sold to customers will cause an increase a. in the selling expense of the buyer. b. in operating expenses for the seller. c. to the cost of goods sold of the seller
Last Answer : b. in operating expenses for the seller.
Description : Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation a) Added back b) Deducted c) Decreased d) None of these
Last Answer : a) Added back
Description : Which of the following is non-current asset a) Goodwill b) Debtors c) Stock d) Prepaid rent
Last Answer : a) Goodwill
Description : Stock and prepaid expanses are not included in ---------------- a) Current asset b) Fixed asset c) Current liability d) Quick asset
Last Answer : d) Quick asset
Description : A sales discount does not a. provide the purchaser with a cash saving. b. reduce the amount of cash received from a credit sale. c. increase a contra-revenue account. d. increase an operating expense account.
Last Answer : d. increase an operating expense account.
Description : Increase in the amount of bills payable results in---------- a) Decrease in cash b) Increase in cash c) No change in cash d) None of these
Last Answer : b) Increase in cash
Description : Increase in the amount of bills receivable results in-------------- a) decrease in cash b) increase in cash c) no change in cash d) none of these
Last Answer : a) decrease in cash
Description : Cole Company has sales revenue of $39,000, cost of goods sold of $24,000 and operating expenses of $9,000 for the year ended December 31. Cole's gross profit is a. $30,000. b. $15,000. c. $6,000.
Last Answer : b. $15,000.
Description : Gross profit is calculated by subtracting ________ from _________, a. operating expenses, net income b. sales discounts from sales revenue c. cost of goods sold, net sales revenue d. merchandise inventory, cost of goods sold
Last Answer : c. cost of goods sold, net sales revenue
Description : Gross profit for a merchandiser is net sales minus a. operating expenses. b. cost of goods sold. c. sales discounts. d. cost of goods available for sale.
Last Answer : b. cost of goods sold.
Description : All of the following items would be reported as other expenses and losses except a. freight-out. b. casualty losses. c. interest expense. d. loss from employees' strikes.
Last Answer : a. freight-out.
Description : Which of the following is not a true statement about a multiple-step income statement? a. Operating expenses are often classified as selling and administrative expenses. b. There may be a section for nonoperating ... be a section for operating assets. d. There is a section for cost of goods sold.
Last Answer : c. There may be a section for operating assets.
Description : Indicate which one of the following would appear on the income statement of both a merchandising company and a service company. a. Gross profit b. Operating expenses c. Sales revenues d. Cost of goods sold
Last Answer : b. Operating expenses
Description : . Income from operations will always result if a. the cost of goods sold exceeds operating expenses. b. revenues exceed cost of goods sold. c. revenues exceed operating expenses. d. gross profit exceeds operating expenses.
Last Answer : b. revenues exceed cost of goods sold.
Description : A sales invoice is a source document that a. provides support for goods purchased for resale. b. provides evidence of incurred operating expenses. c. provides evidence of credit sales. d. serves only as a customer receipt.
Last Answer : c. provides evidence of credit sales.
Description : Which of the following expressions is incorrect? a. Gross profit – operating expenses = operating income b. Sales – cost of goods sold – operating expenses = operating income c. Operating income + operating expenses = gross profit d. Operating expenses – cost of goods sold = gross profit
Last Answer : d. Operating expenses – cost of goods sold = gross profit
Description : aAfter gross profit is calculated, operating expenses are deducted to determine a. gross margin. b. operating income. c. gross profit on sales. d. net margin.
Last Answer : b. operating income.
Description : Two categories of expenses for merchandising companies are a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold.
Last Answer : c. cost of goods sold and operating expenses.
Description : Income from operations is gross profit less a. administrative expenses. b. operating expenses. c. other expenses and losses. d. selling expenses.
Last Answer : b. operating expenses.
Description : ncome Summary has a credit balance of $12,000 in J. Sawyer Co. after closing revenues and expenses. The entry to close Income Summary is a. credit Income Summary $12,000, debit Retained Earnings ... 000, credit Dividends $12,000. d. debit Income Summary $12,000, credit Retained Earnings $12,000.
Last Answer : d. debit Income Summary $12,000, credit Retained Earnings $12,000.
Description : Which of the following is a true statement about closing the books of a corporation? a. Expenses are closed to the Expense Summary account. b. Only revenues are closed to the Income Summary ... account. d. Revenues, expenses, and the dividends account are closed to the Income Summary account.
Last Answer : c. Revenues and expenses are closed to the Income Summary account.
Description : If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a a. debit to the retained earnings account. b. debit ... . c. credit to the retained earnings account. d. credit to the owner's dividends account.
Last Answer : c. credit to the retained earnings account.
Description : Each of the following accounts is closed to Income Summary except a. Expenses. b. Dividends. c. Revenues. d. All of these are closed to Income Summary.
Last Answer : b. Dividends.
Description : When liquidation expenses is paid and borne by seller company then it is debited to_____ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.
Last Answer : (C) Realisation A/c
Description : The assets which is not taken under the net assets method of calculating Purchase Consideration is: (A) Loose Tools (B) Bills Receivable (C) Machinery (D) Share issued expenses
Last Answer : (D) Share issued expenses
Description : Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000
Last Answer : (c) Rs. 1,70,000
Description : Element/s of Cost of a product are: (a) Material only (b) Labour only (c) Expenses only (d) Material, Labour and expenses
Last Answer : (d) Material, Labour and expenses
Description : Salaries Rs.20000,depreciation for the period is Rs.30000 other operating expenses are Rs.9000, net loss for the period is Rs.5000 fund generated from operation is------------------ a) Rs.25000 b) Rs.15000 c) Rs.35000 d) Rs.14000
Last Answer : a) Rs.25000
Description : Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 funds from operation will be a) Rs.60000 b) Rs.50000 c) Rs. 40000 d) Rs. 30000
Last Answer : a) Rs.60000
Description : Under ------------------------ each item of expenses taken as a percentage on net sales a) Comparative income statement b) Comparative balance sheet c) Common size Balance sheet d) Common size Income Statement
Last Answer : d) Common size Income Statement
Description : Financial Statements provide a summary of -------------------------- a) Accounts b) Assets c) Liabilities d) Expenses
Last Answer : a) Accounts
Description : When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is — (a) 20% (b) 30% (c) 25% (d) 40%.
Last Answer : (c) 25%
Description : The amount of chemical coagulant added for treatment of polluted water __________ with increase in temperature of the polluted water to be treated. (A) Decreases (B) Increases (C) Remain constant (D) May increase or decrease; depends on the chemical characteristics of polluted water
Last Answer : (A) Decreases
Description : With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project (A) Decreases (B) Increases (C) Increases linearly (D) Remain constant
Description : Preference dividend in arears on the date of winding up is a) Treated as Secured creditor b) Treated as Preferential creditor c) Treated as Over – riding preferential creditor d) Added to Preference Share Capital
Last Answer : d) Added to Preference Share Capital
Description : Surplus , if any , from the creditors having been secured on the assets specially pledged , is added to the estimated realisable value of the assets not specifically pledged.
Last Answer : TRUE
Description : Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production ... 1) and (2) only (c) (1) and (3) only (d) (2) and (3) only
Last Answer : (c) (1) and (3) only