When goods are purchased for resale by a company using a periodic inventory system
purchases are debited to Merchandise Inventory
purchases are debited to Purchases
purchase returns are debited to Purchases R&A
freight costs are debited to Purchases
In determining cost of goods purchased
beginning inventory is added to net purchases
freight out is added to net purchases
purchase R&A are deducted from net purchases
freight in is added to net purchases
Which of the following should not be included in the physical inventory of a company
goods held on consignment from another company
goods shipped on consignment from another company
goods in transit purchased from a manufacturer shipped FOB shipping point
none of the above
If beginning inventory is 60 000, cost of goods purchased is 380 000, and ending inventory is 50 000. CoGS=?
330k
370k
390k
420k
A multiple step income statement in a periodic inventory system differs from that in a perpetual inventory system because it has
a detailed cost of goods section
net sales
gross profit
operating expenses
FOB shipping point indicates that
there are no shipping charges involved
the seller and the purchaser split shipping charges
the seller will record shipping charges on their books
the purchaser will record shipping charges on their books
Current ratios for four companies are provided below, Select the current ratio of the company in the best position
1.31:1
2.10:1
2.30:1
0.44:1
Inventory turnover stats for four companies are provided below. Select the inventory turnover of the company in the best position
4.57 times
2.10 times
10.92 times
8.44 times
Which of the following would be considered a selling expense?
Freight In
Amortization Expense - Display Fixtures
Amortization Expense - Office Equipment
Loss on Sale of Display Fixtures
In a periodic inventory system, cost of goods sold is recorded
on a daily basis
on a monthly basis
on an annual basis
with each sale
