Directions: Read the given sentences carefully. Select the best answer from the choices given below. Write your answer on the space provided before each item. Gains Purchases Sales Income Gross Profit Sales Discount Selling expenses Professional Fee Net Income Operating expenses Sales return Cost of Goods Sold Service Income 1. An example of service revenue.
Directions: Read the given sentences carefully. Select the best answer from the choices given below. Write your answer on the space provided before each item. Gains Purchases Sales Income Gross Profit Sales Discount Selling expenses Professional Fee Net Income Operating expenses Sales return Cost of Goods Sold Service Income 1. An example of service revenue.
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 3E
Related questions
Question
Directions: Read the given sentences carefully. Select the best answer from the choices given
below. Write your answer on the space provided before each item.
Gains
Purchases
Sales Income
Gross Profit
Sales Discount
Selling expenses
Professional Fee
Net Income
Operating expenses
Sales return
Cost of Goods Sold
Service Income
1. An example of service revenue.
2. The revenue generated from the sale of products.
3. It is computed by deducting the cost of sales from net sales.
4. It is used to describe revenue derived from the rendering of services.
5. A type of income derived from the other activities of the business.
6. The account used to report the acquisitions of merchandise for sale.
7. It represents the actual cost of inventories that the company was able to sell.
8. These are expenses that are directly related to the main purpose of a merchandising
business
9. A contra-sales account that is used to report the amount of discount given to or taken
by the customers.
10. It refers to all other expenses related to the operation of the business such as salary
of employees, utility expense and supplies expense.
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