Question 21 Cost of goods sold is often the largest expense on a merchandising company income statement. A True B False
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Question 21
Cost of goods sold is often the largest expense on a merchandising company income statement.
A True
B False
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- 10.Statement 1 (S1): A markup of 16 2/3% on billed price is equal to a markup of 14 2/7% on cost of merchandise shipped to the branch by the home office.Statement 2 (S2): If the home office bills merchandise shipments to the branch at prices above home office cost, the net income reported to the home office by the branch is overstated from a total company point of view. * A. S1- True; S2- True B. S1- True; S2- False C. S1- False; S2- True D. S1- False; S2- FalseQuestion 7 The balance sheet of a manufacturing company will have multiple inventory accounts A. True B. FalseQUESTION 33 Under generally accepted accounting principles, a company can choose among different cost flow assumptions for valuing cost of goods sold that can result in different income reporting. However, a company cannot frequently change the cost flow assumption adopted in order to measure the highest income possible because of the: conservatism principle. going concern principle. stable-dollar principle. consistency principle.
- A single-step income statement for a merchandising firm: Question 7 options: A) Shows a different net income amount than a multiple-step income statement B) May not be used because it is an unacceptable reporting format C) Does not show a gross profit on sales amount D) None of the aboveStatement 1 (S1): A markup of 16 2/3% on billed price is equal to a markup of 14 2/7% on cost of merchandise shipped to the branch by the home office.Statement 2 (S2): If the home office bills merchandise shipments to the branch at prices above home office cost, the net income reported to the home office by the branch is overstated from a total company point of view. * a. S1- True; S2- True b. S1- True; S2- False c. S1- False; S2- True d. S1- False; S2- Falsepvn.4 The following information pertains to inventory for a company:March 1Beginning inventory = 32 units @ $5.60March 3Purchased 21 units @ 4.30March 9Sold 29 units @ 8.10What is the cost of goods sold, assuming the company uses LIFO? (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.)
- chapter 7 7. Calculate the shortage percent. Present your answer with a percent sign, rounded to two decimal places (i.e. 19.64%). NOTE. There are four questions associated with this data. You will ultimately complete a complete RIM exercise. Cost ($) Retail ($) Opening inventory 130,410 201,543 Gross purchases 418,390 884,916 Returns to vendors 1,726 3,514 Cash discounts 2,040 Alteration costs 1,620 Freight 1,690 Gross Sales 806,430 Customer returns 60,340 Markdowns 120,630 Markdown cancellations 3,048 Additional markup 360 Employee discounts 1,010 Closing physical inventory 212,803chapter 3 3. Given the information below, what is the profit dollars? Round your answer to the dollar and add a dollar sign and comma separator (i.e. $15,467) Gross Sales $341,420 Customer Returns 29,870 Cost of Goods Sold 161,570 Expenses 138,14014-What is the expansion of LIFO in the context of valuing Merchandise Inventory of a Merchandise business? a. Fast In Last Out b. First In Last Out c. Last In Fast Out d. Last In First Out
- PART 1: Raw Materials Inventory Turnover A. How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) , calculate and discuss the implications of Sunn's RM Inventory Turnover. Days' Sales in Raw Materials Inventory B. How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) calculate and discuss the implications of Sunn's Days' Sales in RM InventoryFor a manufacturer, what is the description of the account that is comparable to a merchandising businesss cost of merchandise sold?
