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Hw Accounting

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AC210EXAM 1EEACH MULTIPLE QUESTION IS 5 POINTS PROBLEM IS 50 POINTS

TOTAL POINTS=100

YOUR NAME___________Tyler Gaassett________________

Multiple Choice Questions *Highlight Your Answer
 
Chapter 6
1-30. Operating income is: 
A. A measure of profitability after deducting cost of sales from net sales. B. A measure of profitability after deducting cost of sales and all expenses incurred in operating the business from net sales. C. A measure of liquidity after deducting cost of sales from net sales. D. The equivalent of net sales

2-35. Which of the following would not tend to make a manufacturer choose a perpetual inventory system?  A. Management wants information about quantities of specific products. B. A low volume of sales transactions and a computerized accounting system. C. A high volume of sales transactions and a manual accounting system. D. Items in inventory with high per unit costs.

3-37. Which of the following factors would suggest the use of a perpetual inventory system?  A. A small company.
B. A high volume of many different, low-cost items.
C. A desire to minimize record-keeping requirements.
D. Only annual reporting is required.
 4-38. Which of the following businesses is likely to have the shortest operating cycle?  A. A food store.
B. A department store.
C. An art store.
D. A car store.

5-42. Which of the following appears in the income statement of a merchandising business, but not in the income statement of a business that renders only services?  A. Interest revenue.
B. Gross profit.
C. Advertising expense.
D. Income tax expense.
 
6-43. Which of the following factors would suggest the use of a periodic inventory system?  A. A small company.
B. A high volume of sales and a manual accounting system.
C. Neither a small company or a high volume of sales and a manual accounting system. D. Both a small company and a high volume of sales and a manual accounting system.

Chapter 7
 
7-48. A good system...