Accounting test 2

Each of the following companies is a merchandising company except a

• wholesale parts company

• moving company

• candy store

• furniture store

Net income will result if gross profit exceeds

• cost of goods sold.

  
  

• operating expenses.

• purchases.

•  cost of goods sold plus operating expenses.

Tags

CCSS.HSA.CED.A.4

A merchandiser that sells directly to consumers is a

• retailer.

• wholesaler

• broker.

• service enterprise.

If goods in transit are shipped FOB destination,

• the seller has legal title to the goods until they are delivered.

  
  

• the buyer has legal title to the goods until they are delivered.

  
  

• the transportation company has legal title to the goods while the goods are in transit.

  
  

• no one has legal title to the goods until they are delivered.

  
  

Goods held on consignment are

• goods held by one party for sale on behalf of the owner.

• included in the ending inventory of the party holding the goods.

  
  

• kept for sale on the premises of the owner.

  
  

• included as part of no one's ending inventory.

  
  

The LIFO inventory method assumes that the cost of the latest units purchased is

• the last to be allocated to cost of goods sold

•  the first to be allocated to ending inventory.

  
  

• the first to be allocated to cost of goods sold.

• not allocated to cost of goods sold or ending inventory.

Which of the following is an inventory cost flow method?

• Periodic

• Specific Identification

• Perpetual

• Lower cost of market

Suppose that the following information was available for Tesla Company at December 31, 2025: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $630,000; and sales $900,000. Tesla's inventory turnover, rounded to one decimal place, in 2025 was

• 9.0 times.

• 7.9 times.

• 6.3 times.

• 5.3 times.

An NSF check should appear in which section of the bank reconciliation?

• Addition to the balance per books.

  
  

• Deduction from the balance per bank.

• Addition to the balance per bank.

• Deduction from the balance per books.

Which of the following would be added to the balance per books on a bank reconciliation?

• Outstanding checks.

• Deposits in transit.

  
  

• Notes collected by the bank.

  
  

• NSF check.