Description : A foreign currency transaction arises when an enterprise buys or sells goods or services whose price is denominated in the reporting currency.
Last Answer : FALSE
Description : A merchandising company that sells directly to consumers is a a. retailer. b. wholesaler. c. broker. d. service company.
Last Answer : a. retailer.
Description : Which of the following would not be considered a merchandising company? a. Retailer b. Wholesaler c. Service firm d. Dot Com firm
Last Answer : c. Service firm
Description : The sales revenue section of an income statement for a retailer would not include a. Sales discounts. b. Sales. c. Net sales. d. Cost of goods sold.
Last Answer : c. Net sales.
Description : On October 4, 2008, Terry Corporation had credit sales transactions of $2,800 from merchandise having cost $1,900. The entries to record the day's credit transactions include a a. debit of $2,800 to ... c. debit of $1,900 to Merchandise Inventory. d. credit of $1,900 to Cost of Goods Sold.
Last Answer : b. credit of $2,800 to Sales.
Description : Who sells to the customers? A. Semi wholesalers B. Wholesalers C. Retailer D. Distributor
Last Answer : C. Retailer
Description : . A credit memorandum is prepared when a. an employee does a good job. b. goods are sold on credit. c. goods that were sold on credit are returned. d. customers refuse to pay their accounts.
Last Answer : c. goods that were sold on credit are returned.
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 : Business Setup - Sole Proprietorship, Partnership or Corporation?
Last Answer : When starting a small business, one of the very first things you need to decide is the type of business setup you want to have. The 3 basic types of business setups are a sole ... responsible for the actions of a business while a corporation protects the shareholders from any personal liability.
Description : IFCI has been converted into a________. A. joint stock company. B. co-operative society. C. partnership firm. D. sole proprietorship.
Last Answer : A. joint stock company.
Description : . Which one of the following is an optional step in the accounting cycle of a business enterprise? a. Analyze business transactions b. Prepare a worksheet c. Prepare a trial balance d. Post to the ledger accounts
Last Answer : b. Prepare a worksheet
Description : Stock turnover ratio is used to determine -----------------------of an enterprise a) Profitability b) Liquidity& solvency c) Efficiency d) Growth
Last Answer : c) Efficiency
Description : Location is extremely important to a retailer because: A)suppliers charge more to service stores in certain trading areas. B)a desirable location appeals to consumers' emotions and encourages them ... which the store must draw its customers. E)convenient location is an essential customer service.
Last Answer : D)location determines the trading area from which the store must draw its customers.
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 : Comparison of financial variables of a firm over a period of time is known as-------------- a) Comparative b) Common-size c) Trend analysis d) None of the above
Last Answer : c) Trend analysis
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 : Hale Company sells merchandise on account for $1,500 to Kear Company with credit terms of 2/10, n/30. Kear Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount ... is the amount of the check? a. $1,470 b. $1,476 c. $1,200 d. $1,176
Last Answer : d. $1,176
Description : Company A sells $500 of merchandise on account to Company B with credit terms of 2/10, n/30. If Company B remits a check taking advantage of the discount offered, what is the amount of Company B's check? a. $350 b. $490 c. $450 d. $400
Last Answer : b. $490
Description : Holt Company sells merchandise on account for $2,000 to Jones Company with credit terms of 2/10, n/30. Jones Company returns $400 of merchandise that was damaged, along with a check to settle the account within the discount ... the amount of the check? a. $1,960 b. $1,968 c. $1,600 d. $1,568
Last Answer : d. $1,568
Description : Company X sells $400 of merchandise on account to Company Y with credit terms of 2/10, n/30. If Company Y remits a check taking advantage of the discount offered, what is the amount of Company Y's check? a. $280 b. $392 c. $360 d. $320
Last Answer : b. $392
Description : A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units
Last Answer : (b) 3,000 units
Description : 3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25 ... period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrease
Last Answer : (a) 10.1% decrease
Description : What online retailer sells musical instrument microphones?
Last Answer : Musician's Friend has the largest selection of instrument microphones on the internet. They also have a mail-order catalog that you can order from, but they sometimes offer certain perks for ordering online.
Description : What retailer sells a dvd recorder player?
Last Answer : There are a lot of retailers that sell dvd record players. Some would be Amazon, consumerresearch, Best Buy, Walmart, overstock, nextag as well as many other places.
Description : A retailer buys 40 pens at the marked price of 36 pens from a wholesaler. If he sells these pens giving a discount of 1%, what is the profit percent? A. 10% B. 22% C. 25% D. 26%
Last Answer : Answer – A (10%) Explanation – Let the marked price of each pen be Re. 1. Then, C.P. of 40 pens = Rs. 36. S.P. of 40 pens = 99% of Rs. 40 = Rs. 39.60. ∴ Profit% = [3.60/36 x 100]% = 10%.
Description : A dealer allows a discount of 40 % on the marked price to the retailer. The retailer sells at 10% below the marked price. If the customer pays Rs.38 for an article, what profit is made by the retailer on it?
Last Answer : Let dealer marked price = 100%, Retailer's C.P = 60% And the retailer sells at 10% less than the marked price =>S.P = 90% If S.P of 90% of the retailer costs Rs.38 to customer, So its C.P of 60% will cost 60*38/90 = 25 Profit made by the retailer = 38-25 = Rs.13
Description : As an incentive for customers to pay their accounts promptly, a business may offer its customers a. a sales discount. b. free delivery. c. a sales allowance. d. a sales return.
Last Answer : a. a sales discount.
Description : The Sales Returns and Allowances account does not provide information to management about a. possible inferior merchandise. b. the percentage of credit sales versus cash sales. c. inefficiencies in filling orders. d. errors in overbilling customers.
Last Answer : b. the percentage of credit sales versus cash sales.
Description : The credit terms offered to a customer by a business firm are 2/10, n/30, which means that a. the customer must pay the bill within 10 days. b. the customer can deduct a 2% discount if the ... date. d. two sales returns can be made within 10 days of the invoice date and no returns thereafter.
Last Answer : c. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.
Description : Under firm underwriter g, the underwriters do not agree to purchase any shares.
Description : Statutory cost audit are applicable only to: (a) Firm (b) Company
Last Answer : (b) Company
Description : -------------------means transfer of economic value of firm from one asset or equity to another. a) Flow of funds b) Uses of fund c) Inflow of funds d) Application of funds
Last Answer : a) Flow of funds
Description : The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be a) 20% b) 5% c) 50% d) 20%
Last Answer : a) 20%
Description : Ratio to assess the short term debt paying capacity of a firm is---------- a) Debt equity ratio b) Propriety ratio c) Liquid ratio d) Solvency ratios
Last Answer : c) Liquid ratio
Description : Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others
Last Answer : b) Short term
Description : Ratios help the management in evolving market strategies through ----------- a) Inter firm comparison b) Intra firm comparison c) Ratios d) None of the above
Last Answer : a) Inter firm comparison
Description : The main aim of the ratio analysis is to help the ----------of the firm a) Owners b) Officials c) Departments d) Management
Last Answer : d) Management
Description : Long term solvency of a firm can be measured by a) Current ratio b) Net profit ratio c) Gross profit ratio d) Debt equity ratio
Last Answer : d) Debt equity ratio
Description : A partnership between a domestic firm and a foreign firm is known as 1. a joint venture 2. an international partnership 3. a multinational enterprise 4. licensing 5. exporting
Last Answer : a joint venture
Description : A partnership between a domestic firm and a foreign firm is known as A)a joint venture. B)an international partnership. C)a multinational enterprise D)licensing. E)exporting
Last Answer : A)a joint venture.
Description : A person owning and running a small firm, is known as________. A. A manager-owner. B. An owner-manager. C. A professional adapter. D. An enterprise worker
Last Answer : B. An owner-manager An owner-manager is a person who owns and runs a small firm, such as a small business or a family-owned enterprise. This person is responsible for the overall management ... works in a company and a professional adapter is someone who can adapt to different roles and situations.
Description : ‘Self-help by mutual help’ is a feature of– (A) Public enterprise (B) Public corporation (C) Co-operative society (D) All of the above
Last Answer : Answer: Co-operative society
Description : What is Damodar Valley Corporation? (1) Statutory body (2) Municipal Corporation looking after Damodar Valley (3) A private enterprise located in Bihar (4) A non government organisation
Last Answer : (1) Statutory body Explanation: Damodar Valley Corporation (DVC), having its headquarters at Kolkata, is a statutory body created under the Damodar Valley Corporation Act, 1948. It operates ... operates both thermal power stations and hydel power stations under the Union Ministry of Power.
Description : Cost of goods available for sale is computed by adding a. freight-in to net purchases. b. beginning inventory to net purchases. c. beginning inventory to purchases and freight-in. d. beginning inventory to cost of goods purchased.
Last Answer : d. beginning inventory to cost of goods purchased.
Description : In the Clark Company, sales were $480,000, sales returns and allowances were $30,000, and cost of goods sold was $288,000. The gross profit rate was a. 64%. b. 36%. c. 40%. d. 60%.
Last Answer : b. 36%.
Description : Which of the following accounts is not closed to Income Summary? a. Cost of Goods Sold b. Merchandise Inventory c. Sales d. Sales Discounts
Last Answer : b. Merchandise Inventory
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 : When a periodic inventory system is used, cost of goods sold is calculated as follows: a. Ending inventory plus purchases less beginning inventory. b. Beginning inventory plus purchases less ... of merchandise purchased less ending inventory. d. Cost of merchandise sold plus beginning inventory.
Last Answer : b. Beginning inventory plus purchases less ending inventory
Description : A physical count of inventory is taken at the end of an accounting period under a periodic system in order to a. verify the accuracy of the accounting records. b. determine cost of goods ... period. c. determine the amount of inventory purchased during the period. d. calculate property taxes.
Last Answer : b. determine cost of goods sold for the period.
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