True or false 1. Net sales is equal to sales revenue plus sales returns and minus sales discounts 2. FOB shipping point means title to the goods passes to the purchaser upon receipt of the goods and the seller is responsible for the cost of the freight

Q: a. Net sales b. Cost of goods sold C. Gross profit on sales

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: When merchandise was shipped by the consignor to the consignee and freight on shipment was paid by…

A: When goods are sold all the costs incurred to bring the goods to the desirable location will also be…

Q: 29 - How are purchase refunds recorded to which account? A) From the purchase to the debt of the…

A: Purchase returns are always in a nature of returns made to the sellers and thus decreasing the…

Q: Which account balance is NOT used to compute the cost of goods sold? a.Merchandise Inventory…

A: Formula: Cost of goods sold = Beginning Merchandise inventory + Net Purchases - Ending Merchandise…

Q: Which of the following will be called as an expense of a Merchandise business? a. Sale of…

A: a.) Sale of merchandise inventory means sales of goods so it is and income. b.) Trade discount is…

Q: payment payroil percentage the amount of sales contributed by a sales person? O a. Sales O b.…

A: Note: As per our guidelines, we can only answer 1 question at once. Since, you haven't mentioned…

Q: SLO-5.2. Using the term means that the buyer will pay the freight charges of the merchandise to the…

A: whenever the goods are purchased at the raw material for the production of goods are purchase there…

Q: Which of the following statements is correct? Group of answer choices A)Revenue is recognized at the…

A: A)Revenue is recognized at the time of shipment when goods are shipped FOB destination-The given…

Q: How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating…

A: The Gross profit is the excess of revenue over the cost of goods sold. It is the amount available…

Q: Statement 1: Companies must allocate the cost of all the goods available for sale (or use) between…

A: Companies must allocate the cost of goods available for sale or use between income statement and…

Q: Which one of the following statements is true regarding the cost of sales, if the perpetual…

A: The perpetual inventory system is the company where the company counts and records the inventory on…

Q: 31. Gross Sales - Sales Discount - Sales Returns and Allowances is equal to?

A: Gross Sales : Grand total of sales transaction during a particular time period.  Net Sales : Net…

Q: Pre b. To determine sales revenue d. Inventory does not affect net income To determine cost of goods…

A: Since you have asked multiple questions, we will solve the first one for you. If you want any…

Q: Total goods available for sale is equal to  a. the sum of ending inventory and net purchases. b.…

A: Beginning inventory + Net purchases = Cost of goods sold + Ending inventory Total cost of goods…

Q: How is Income from Operations determined? A) Net Sales - Selling Expenses - Administrative Expenses…

A: Net sales - Cost of goods sold = Gross profit

Q: FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer…

A: Whenever business sells goods to the customer, then there can be two type of terms. One is FOB…

Q: Which of the following is the correct computation for the cost of goods available for sale? a.Net…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Consignments refer to that specialized marketing method whereby the Consignee a. holds title to the…

A: Solution: In the consignments model, consignor will remain owner of goods and consignee takes…

Q: Distinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will…

A: The letter FOB means Free On Board. Those goods that are placed free onboard the carrier by the…

Q: Which of the following statements is NOT true

A: Answer:   Option c.

Q: 6. Freight costs incurred by a seller on outgoing merchandise are debited to a. the Cost of Goods…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: 6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…

A: Formula: Gross income = Net sales - cost of goods sold Deduction of cost of goods sold from Net…

Q: True of False: 1. Merchandise inventory consists of products that a company acquires to resell to…

A: Hi, please note that as per guidelines, I'm answering the first 3 parts here. Kindly post the…

Q: 1. Net purchases equal the invoice amount and? a. plus freight-in, plus discounts b. less purchase…

A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…

Q: .In consignment sales, what is the proper treatment of the consignment-related transportation cost…

A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…

Q: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: The term FOB shipping point means that the ownership of the goods is vested on the buyer upon…

A: Free on Board(FOB) means that the buyer will get ownership of the goods that they have purchased…

Q: Based on the account balances above, calculate Net sales Cost of goods sold Gross profit/loss Other…

A: Net sales means the sales of company less sales returns. Cost of goods sold means the direct cost of…

Q: 7.Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods…

A: Using perpetual inventory system, the expenses incurred on purchase is debited to inventory account.…

Q: When goods are shipped FOB destination and the seller pays the freight charges, the buyer A.…

A: Transportation expense is a type of travel expense that refers specifically to the cost of…

Q: What type of expenses are deducted as a part of gross profit? A)"Cost of goods sold" only…

A: Gross profit can be calculated by deducting cost of goods sold from the net sales.

Q: Payable turnover is a measure of cost ot goods sold and accounts payable. Select one: O True False

A: Payable turnover ratio is calculated as follows -  cost of goods sold / average accounts payable

Q: What is the term applied to the excess of revenue from sales over the Cost of Merchandise Sold? a.…

A: Revenue from sales represents the amount of revenue recognized from the sales made during a…

Q: In accounting for consignment sales, sales revenue and the related cost of goods sold should be…

A: Introduction:- Consignment arise when goods are sent by their owner to an agent who undertakes to…

Q: 1. e buyer is to pay the transportation costs of delivering merchandise, delivery terms are stated…

A: 1)Option A  is correct FOB shipping point Means free on board at shipping point; buyer incurs all…

Q: True or false 1. Cost of goods sold is an operation expense 2. Gross profit is equal to net sales…

A: Given, Cost of goods sold is an operation expense, Gross profit is equal to net sales plus cost of…

Q: The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the…

A: The invoice is prepared at the time of sale of goods on credit. The invoice details about the…

Q: b) Complete the following table to show how FOB terms apply to merchandise inventory purchased by a…

A: Inventory is the stock that an entity owns for selling in the market. It represents the goods that…

Q: Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a…

A: The freight cost  is paid by the seller till the goods have reached their destination and then the…

Q: Selling expenses are shown in which of the following statement? a. Cost of Goods Sold b. Profit and…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Gross profit is the gross sales price charged for the goods sold A.True B.False

A: Gross profit means the profit earned by selling the goods without considering the indirect expenses…

Q: TRUE OR FALSE 1. According to PAS 2, inventories are measured at net realizable value. 2. According…

A: Inventories are measured at the lower of cost and net realizable value.  NRV is not fair value less…

Q: Which of the following equations is false? a. Net Income = Gross Profit – Operating Expenses b. COGS…

A: The difference between gross profit and net profit or net income is the operating expenses. Gross…

Q: Determine the following: a. Net Sales b. Net Purchases c. Cost of Goods Sold d. Bad Debts Expense

A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a…

Q: Cost of goods sold: Multiple Choice Is another term for merchandise sales. Is the term used for the…

A: The question is based on the concept of Accounting theory.

Q: Purchases of inventory minus purchase discounts and minus purchase returns and allowances equals: a.…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.