Chapter 04 Accounting for Merchandising Operations文档格式.docx

Chapter 04 Accounting for Merchandising Operations文档格式.docx

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13.Inaperpetualinventorysystem,themerchandiseinventoryaccountreflectsthecostof

goodsavailableforsale. 

14.Aperpetualinventorysystemcontinuallyupdatesaccountingrecordsforinventory

transactions. 

Chapter05

15.Foramerchandisingbusiness,anincreaseinsaleswillprobablyalsoresultinahigher

inventoryturnoverrate.

16.Theconsistencyprinciplerequiresacompanytousethesameaccountingmethodsperiod

afterperiod,sothatfinancialstatementsarecomparableacrossperiods. 

17.Inaperiodofrisingprices,FIFOusuallygivesalowertaxableincome,whichleadstoan

advantagewhenitcomestopayingincometax. 

18.AnadvantageofLIFOisthatitassignsthemostrecentcoststocostofgoodssoldanddoes

abetterjobofmatchingcurrentcostswithrevenuesontheincomestatement. 

19.Anunderstatementofendinginventorywillcauseanunderstatementofassetsandequityon

thebalancesheet. 

20.Threekeyvariablesdeterminethedollarvalueofinventory:

（1）inventoryquantity,

（2）costs

ofinventoryand（3）costflowassumption. 

21.Inapplyingthelowerofcostormarketmethodtoinventoryvaluation,marketisdefinedas

thecurrentreplacementcost. 

Chapter06

22.Theprinciplesofinternalcontrolinclude:

establishresponsibilities,maintainadequate

records,insureassets,separaterecordkeepingfromcustodyofassetsandperformregular

andindependentreviews. 

23.Cashequivalentsareshort-termhighlyliquidinvestmentassetsthatareeasilyconvertedto

cashandhavematuritiesofoneyear. 

24.Liquidityreferstoacompany'

sabilitytopayitsshort-termobligations. 

25.Checkingaccountsarealsocalleddemanddeposits. 

26.Thejournalentryforpettycashreimbursementinvolvesadebittotheappropriateexpenses

andacredittoPettyCash. 

27.Abankreconciliationexplainsanydifferencesbetweenthebalanceofacheckingaccounton

thedepositor'

srecordsandthebalancereportedonthebankstatement. 

Chapter07

28.Apromissorynoteisawrittenpromisetopayaspecifiedamountofmoneyeitheron

demandoratadefinitefuturedate. 

29.Thedirectwrite-offmethodofaccountingforbaddebtsrecordsthelossfroman

uncollectibleaccountreceivablewhenthecompanydeterminesittobeuncollectible. 

30.Thematchingprinciplerequiresuseofthedirectwrite-offmethodofaccountingforbad

debts. 

31.Theadvantageoftheallowancemethodofaccountingforuncollectibleaccountsisthatit

identifiesthespecificcustomerswhodonotpaytheirbills. 

32.Theaccountsreceivablemethodtoestimatebaddebtsobtainstheestimatedbalanceinthe

AllowanceforDoubtfulAccountsinoneoftwoways:

（1）thepercentuncollectiblefromthe

totalaccountsreceivableor

（2）agingaccountsreceivable. 

33.Theagingmethodofdeterminingbaddebtsexpenseisbasedontheknowledgethatthe

longerareceivableispastdue,thelowerthelikelihoodofcollection. 

34.Itisnevergoodpracticetoacceptanotereceivableinexchangeforanoverdueaccount

receivable. 

Chapter01

35.Whichofthefollowingaccountingprinciplesdictateswhenexpensesarerecognized?

A. 

Revenuerecognitionprinciple

B. 

Businessentityprinciple

C. 

Matchingprinciple

D. 

Fulldisclosureprinciple

36.Whichofthefollowingelementsarefoundontheincomestatement?

Cash

AccountsReceivable

RetainedEarnings

SalariesExpense

37.WhichofthefollowingelementsarefoundontheBalanceSheet?

ServiceRevenue

NetIncome

UtilitiesExpense

38.Aparceloflandis:

offeredforsaleat$150,000,assessedfortaxpurposesat$95,000,

recognizedbyitspurchasersasbeingworth$140,000andpurchasedfor$137,000.Theland

shouldberecordedinthepurchaser'

sbooksat:

$95,000

$137,000

$140,000

$150,000

39.Revenuesare:

Thesameasnetincome

Resourcesownedorcontrolledbyacompany

Increasesinretainedearningsfromacompany'

searningactivities

Thecostsofassetsorservicesused

Chapter02

40.Aledgeris:

A.Arecordcontainingincreasesanddecreasesinaspecificasset,liability,equity,revenue

orexpenseitem

B. 

Ajournalinwhichtransactionsarefirstrecorded

Acollectionofdocumentsthatdescribetransactionsandeventsduringtheaccounting

process

Alistofallaccountswiththeirdebitbalancesatapointintime

41.Anaccountbalanceis:

Thetotalofthecreditsideoftheaccount

Thetotalofthedebitsideoftheaccount

Thedifferencebetweenthetotaldebitsandtotalcreditsforanaccountincludingthe

beginningbalance

Alwaysacredit

42.TheFiresideCountryInnisaverypopulardestinationfortourists.TheInnrequiresgueststo

makereservationsatleasttwomonthsinadvanceoftheirstay.Atwentypercentdown

paymentisrequiredatthetimethereservationismade.Whenshouldthisinnrecognize

roomrentalrevenue?

Onthedatethereservationisreceived

Onthedatethemoneyforthereservationisreceived

Onthedatetheguestsstayintheinn

Onceallcashhasbeenreceived

43.Businessescantakeallofthefollowingformsexcept:

Soleproprietorship

Commonstock

Partnership

Corporation

Chapter04

44.Acompanyhadsalesof$375,000anditsgrossprofitwas$157,500.Itscostofgoodssoldequal:

A. 

$375,000

$157,500

C. 

$217,500

D. 

$532,500

Thecurrentperiod'

sendinginventoryis:

Thenextperiod'

sbeginninginventory

scostofgoodssold

Thepriorperiod'

snetpurchases

45.Thecreditterms2/10,n/30areinterpretedas:

2%cashdiscountiftheamountispaidwithin10days,withthebalanceduein30days

30%discountifpaidwithin2days

30%discountifpaidwithin10days

2%discountifpaidwithin30days

46.Saleslesssalesdiscountslesssalesreturnsandallowancesequals:

Costofgoodssold

Netsales

Grossprofit

Netincome

47.HeraldCompanyhadsalesof$135,000,salesdiscountsof$2,000andsalesreturnsof

$3,200.HeraldCompany'

snetsalesequals:

$129,800

$133,000

$135,000

$140,200

48.SellingExpensesare:

A.Expensesofdisplayingandadvertisingmerchandisetocustomers.

B.Expensestosupportcompany’soveralloperations（oftencalled“overhead”）

C.Partofthemarketingdistributionchain.

D.Expenseofbuyingmerchandiseandpreparingitforsale.

49.Multiple-stepincomestatements:

ArerequiredbytheFASB

Containmoredetailthanasimplelistingofrevenuesandexpenses

Arerequiredfortheperpetualinventorysystem

Listcostofgoodssoldasanoperatingexpense

Chapter05

50.Physicalinventorycounts:

Arenotnecessaryundertheperpetualsystem

Arenecessarytomeasureandadjustforinventoryshrinkage

Mustbetakenatleastonceamonth

Arenotnecessaryunderthecost-tobenefitconstraint

51.Whichinventoryvaluationmethodassignsavaluetotheinventoryonthebalancesheetthat

approximatescurrentcostandalsomimicstheactualflowofgoodsformostbusinesses?

FIFO

Weightedaverage

LIFO

Specificidentification

52.Theinventoryvaluationmethodthatresultsinthelowesttaxableincomeinaperiodof

inflationis:

LIFOmethod

FIFOmethod

Weighted-averagecostmethod

Specificidentificationmethod

53.Theconsistencyprinciple:

Requiresacompanytoconsistentlyusethesameaccountingmethodofinventory

valuationunlessachangewillimprovefinancialreporting

Requiresacompanytouseonemethodofinventoryvaluationexclusively

Requiresthatallcompaniesinthesameindustryusethesameaccountingmethodsof

inventoryvaluation

Isalsocalledthefulldisclosureprinciple

54.Theinventoryturnoverratio:

Isusedtoanalyzeprofitability

Isusedtomeasuresolvency

Measureshowquicklyacompanyturnsoveritsmerchandiseinventory

Calculationdependsonthecompany'

sinventoryvaluationmethod

Days'

salesininventory:

Isalsocalleddays'

stockonhand

Focusesonaverageinventoryratherthanendinginventory

Iscalculatedbydividingcostofgoodssoldbyendinginventory

Anoverstatementofendinginventorywillcause 

Anoverstatementofassetsandequi