70.2K

Verified Solution

Link Copied!

28. Sales revenue less cost of goods sold is called

a. net income.

b. gross profit.

c. marginal income.

d. net profit.

29. A merchandiser that sells directly to consumers is a

a. wholesaler.

b. service enterprise.

c. retailer.

d. broker.

30 . Select which of the items below will appear on a balance sheet.

Group of answer choices

Accumulated Depreciation

Interest Expense

Retained Earnings

Notes Payable

Common Stock

Cost of Goods Sold

Dividends

Cash

Inventory

Depreciation Expense

Accounts Payable

Sales

31. Select all of the items below that will appear on an income statement.

Salaries payable

Cash

Prepaid rent

Supplies expense

Capital stock

Salaries expense

Sales

Insurance expense

Consulting fees earned

Dividends

Cost of goods sold

Gain on sale of equipment

32. If assets are $130,000 and equity is $85,000, what is the balance of liabilities?

33. The collection of accounts receivable is recorded by a

a. Debit to cash and a credit to sales.

b. Debit to cash and a debit to accounts receivable.

c. Debit to cash and a credit to accounts receivable.

d. Debit to accounts receivable and a credit to cash

34. In the general ledger, a separate "account" is maintained for each

a. Business day.

b. Business transaction.

c. Journal entry.

d. Type of asset and liability and for each element of owners' equity.

35. In the general ledger, a separate "account" is maintained for each

a. Business day.

b. Business transaction.

c. Journal entry.

d. Type of asset and liability and for each element of owners' equity.

36. Posting is the process of

a. Preparing journal entries to describe each business transaction.

b. Transferring debit and credit entries from the journal into the appropriate ledger accounts.

c. Entering information into a computerized database.

d. Determining that the dollar amount of debit entries recorded in the ledger is equal to the dollar amount of credit entries.

37. To understand and use accounting information in making economic decisions, you must understand

a. The nature of economic activities that accounting information describes.

b. Which information is relevant for a particular type of decision that is being made.

c. The assumptions and measurement techniques involved in developing accounting information.

d. All of the choices are correct

Answer & Explanation Solved by verified expert

See Answer