Hw Accounting
AC210 EXAM 1 EEACH 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
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