Question 1 4 pts

The following account appears on the income statement of amerchandiser:

dividends

cost of goods sold

merchandise inventory

retained earnings

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Question 2 4 pts

Which of the following would we credit to record the purchase ofmerchandise inventory on account if the company uses a perpetualinventory system?

purchases

cash

accounts payable

merchandise inventory

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Question 3 4 pts

On April 1, our company purchases $1,000 worth of merchandiseinventory on credit with the terms 2/10, n/30. What is the amountwe would credit to cash if we pay this invoice on April 20?

$1,000

$998

$990

$980

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Question 4 4 pts

Under FOB shipping, title to merchandise passes to the purchaserwhen:

the sale is recorded

merchandise is shipped to the purchaser

merchandise is received by the purchaser

payment is made

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Question 5 4 pts

Our company sold merchandise on account with a cost of $700 for$1,000. Our company uses a perpetual inventory system. What accountand amount would we credit to record the cost of the merchandisesold?

accounts receivable, $1,000

sales, $1,000

merchandise inventory, $700

cost of goods sold, $700

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Question 6 4 pts

Our company sold merchandise on account with a cost of $700 for$1,000. Our company uses a perpetual inventory system. What accountand amount would we debit to record the cost of the merchandisesold?

accounts receivable, $1,000

sales, $1,000

merchandise inventory, $700

cost of goods sold, $700

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Question 7 4 pts

Which of the following appears on a multi-step income statementbut not on a single-step income statement?

net sales

cost of goods sold

gross profit

net income

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Question 8 4 pts

What is the recommended inventory method for a company dealingin unique, high-priced inventory items?

first in, first out (FIFO)

last in, first out (LIFO)

specific identification

weighted average

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Question 9 4 pts

The two main inventory accounting systems are:

FIFO and LIFO

perpetual and periodic

cash method and accrual method

weighted-average and specific identification

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Question 10 4 pts

A company purchased 10 units for $5 on January 3. It purchased10 units for $7 each on February 28. It sold 10 units on March 1.If the company uses the first in, first out (FIFO) inventorycosting method, what is the dollar amount for ending inventory onthe December 31 balance sheet, assuming that the company uses aperpetual inventory system?

$50

$60

$70

$120

PLEASE ANSWER ALL THE QUESTIONS ...ITS FOR THE EXAM THANKYOU