Gross profit amounts to the distinction betweena. Net income and also operating expenses.b. Sales revenue and cost of products sold.c. Sales revenue and also operating expenses.d. Sales revenue and also cost of goods sold plus operation expenses.

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The primary difference between a periodic and also perpetual inventory mechanism is the a periodic systema. Keeps a record showing the inventory on hand at all time.b. Provides better control over inventories.c. Records the expense of the sale on the date the sale is made.d. Determines the inventory on hand just at the end of the audit period.
When making use of the periodic system the physical inventory count is supplied to determinea. Only the sales worth of goods in the finishing inventory.b. Both the expense of the items in ending inventory and the sales worth of products sold throughout the period.c. Both the cost of the products sold and also the cost of ending inventory.d. Only the cost of was sold throughout the period.
Under a perpetual perform system, salvation of merchandise for resale is debited toa. The perform account.b. The to buy account.c. The provides account.d. The cost of goods Sold account.
Freight prices incurred by a seller on merchandise sold to client will cause an increasea. In the selling costs of the buyer.b. In operating prices for the seller.c. Come the cost of products sold of the seller.d. To a contra-revenue account the the seller.
A firm using a perpetual inventory device that returns items previously to buy on credit woulda. Debit accounts Payable and also credit Inventory.b. Debit Sales and also credit account Payable.c. Debit Cash and credit accounts Payable.d. Debit account Payable and credit Purchases.
Under the perpetual system, cash freight costs incurred through the the person who lives for the carrying of products is recorded in which account?a. Freight Expenseb. Freight-Inc. Inventoryd. Freight-Out
Which of the following accounts is classified together a contra revenue account?a. Sales Revenueb. Price of items Soldc. Sales Returns and also Allowancesd. Acquisition Discounts
Under the perpetual perform system, in addition to make the entrance to record a sale, a agency woulda. Debit Inventory and credit price of goods Sold.b. Debit expense of products Sold and also credit Purchases.c. Debit expense of products sold and credit Inventory.d. Make no additional entry till the finish of the period.

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Which sales accounts generally have a debit balance?a. Sales Discountsb. Sales Returns and Allowances.c. Both Sales Discounts and also Sales Returns and also Allowances have actually debit balances.d. No Sales Discounts or Sales Returns and Allowances have actually debit balances
If products in transit space shipped FOB destinationa. The seller has legal title to the products until they space delivered.b. The buyer has legal location to the products until they are delivered.c. The transportation company has legal location to the items while the items are in transit.d. No one has actually legal location to the items until they are delivered
Which the the complying with should not be had in the physics inventory that a company?a. Goods held top top consignment from an additional company.b. Products in transit indigenous another firm shipped FOB shipping point.c. Products shipped on consignment to one more company.d. All of these answer selections should be included.
In a period of rising prices, i m sorry of the adhering to inventory methods usually results in the shortest net income figure?a. Average price methodb. LIFO methodc. FIFO methodd. Need more information to answer
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