Question 1

A retailer purchases merchandise with a catalog list price of $30,000.The retailer receives a 15% trade discount and has credit terms of 2 / 10,n / 30.How much cash will be needed to pay this invoice within the discount period?

Accepted Answer

A)   $30,000
B)   $24,900
C)   $29,400
D)   $24,990E) None of the above
F) B) and D)

Question 2

When merchandise is sold for $600 plus 6% sales tax,the Sales account should be credited for $636.

Accepted Answer

A) True 
 B)False

Question 3

A business using the perpetual inventory system,with its detailed subsidiary records,does not need to take a physical inventory.

Accepted Answer

A) True 
 B)False

Question 4

Calculate income from operations for Jonas Company based on the following data:

Accepted Answer

A)   $485,500
B)   $711,500
C)   $173,500
D)   $226,000E) B) and D)
F) None of the above

Question 5

When comparing a retail business to a service business,the financial statement that changes the least is the

Accepted Answer

A)   balance sheet
B)   income statement
C)   retained earnings statement
D)   statement of cash flowsE) None of the above
F) B) and D)

Exam 5: Accounting for Merchandising Businesses

A business using the perpetual inventory system,with its detailed subsidiary records,does not need to take a physical inventory.

Correct Answer
verified

Calculate income from operations for Jonas Company based on the following data:

Correct Answer
verified

A retailer purchases merchandise with a catalog list price of $30,000.The retailer receives a 15% trade discount and has credit terms of 2 / 10,n / 30.How much cash will be needed to pay this invoice within the discount period?

Correct Answer
verified

When comparing a retail business to a service business,the financial statement that changes the least is the

Correct Answer
verified

When merchandise is sold for $600 plus 6% sales tax,the Sales account should be credited for $636.

Correct Answer
verified

Exam 5: Accounting for Merchandising Businesses

A business using the perpetual inventory system,with its detailed subsidiary records,does not need to take a physical inventory.

Correct AnswerverifiedShow Answer

Calculate income from operations for Jonas Company based on the following data:

Correct AnswerverifiedShow Answer

A retailer purchases merchandise with a catalog list price of $30,000.The retailer receives a 15% trade discount and has credit terms of 2 / 10,n / 30.How much cash will be needed to pay this invoice within the discount period?

Correct AnswerverifiedShow Answer

When comparing a retail business to a service business,the financial statement that changes the least is the

Correct AnswerverifiedShow Answer

When merchandise is sold for $600 plus 6% sales tax,the Sales account should be credited for $636.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified