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  3. question 2 multiple choice 12 marks 1 the gross margin...

Question: question 2 multiple choice 12 marks 1 the gross margin...

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Question #2- Multiple Choice (12 marks 1) The gross margin percentage is calculated as: a. gross margin minus net sales revenue. E gross margin divided by net sales revenue. c. gross margin plus net sales revenue d. gross margin times net sales revenue. 2) An item is considered material if it facilitates comparison with the financial statements of another company in the same industry a. b, its dollar value is greater than 10% of net income. c. it is accounted for using a treatment that is not normally allowed by generally accepted d. its inclusion in the financial statements would cause a statement user to change a accounting principles. The time span during which cash is used to acquire goods and services, and these goods services are sold to customers, who in turn pay for their purchases with cash, is 3) called the: a. operating cycle b. cash-to-cash cycle. C. liquidity cycle. d. accounting cycle When prices are falling, the cost of goods sold reported on the income statement on a weighted- average basis is generally: 4) a. equally likely to be higher or lower on a weighted-average basis as opposed to a FIFO b. c. d. basis equal to ending inventory reported on a FIFO basis. greater than on a FIFO basis. lower than on a FIFO basis. 5) The end-of-month balance in Dryer Companys cash receipts journal cash column is $22,630. How will this column be posted? a. The total will be posted to the cash account as a credit. b. The total will be posted to the cash account as a debit. c. The individual amounts are posted on a daily basis. d. The total is not posted A purchase return or allowance under a perpetual inventory system is credited to: e. Accounts Payable. f. Purchase Returns and Allowances. g. Inventory h. Purchases Winter 2019
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