Question 1

Under a periodic inventory system, the buyer does not use which of the following accounts in recording purchases and related transactions?

Accepted Answer

A)   Merchandise Inventory
B)   Purchase Returns and Allowances
C)   Purchase Discounts
D)   PurchasesE) None of the above
F) A) and B)

Question 2

The following information for the year Year 1 is taken from the accounts of Tuttle Company. The company uses the periodic inventory method.  Based on this information, the inventory at December 31, Year 21 is:

Accepted Answer

A)   $55,200.
B)   $24,400.
C)   $38,800.
D)   $40,400.E) All of the above
F) A) and B)

Question 3

A multistep income statement separates routine operating results from peripheral or nonoperating items.

Accepted Answer

A) True 
 B)False

Question 4

Merchandising businesses include retail companies and manufacturing companies.

Accepted Answer

A) True 
 B)False

Question 5

Use the following account numbers and corresponding account titles to answer the following question.  Which accounts would appear on the income statement?

Accepted Answer

A)   Account numbers 3, 4, 7, 8, and 9.
B)   Account numbers 3, 4, 5, 7, and 9.
C)   Account numbers 2, 3, 7, 8, and 9.
D)   Account numbers 3, 5, 7, and 8.E) A) and C)
F) A) and B)

Exam 3: Accounting for Merchandising Businesses

Use the following account numbers and corresponding account titles to answer the following question. Which accounts would appear on the income statement?

Correct Answer
verified

A multistep income statement separates routine operating results from peripheral or nonoperating items.

Correct Answer
verified

The following information for the year Year 1 is taken from the accounts of Tuttle Company. The company uses the periodic inventory method. Based on this information, the inventory at December 31, Year 21 is:

Correct Answer
verified

Under a periodic inventory system, the buyer does not use which of the following accounts in recording purchases and related transactions?

Correct Answer
verified

Merchandising businesses include retail companies and manufacturing companies.

Correct Answer
verified

Exam 3: Accounting for Merchandising Businesses

Use the following account numbers and corresponding account titles to answer the following question. Which accounts would appear on the income statement?

Correct AnswerverifiedShow Answer

A multistep income statement separates routine operating results from peripheral or nonoperating items.

Correct AnswerverifiedShow Answer

The following information for the year Year 1 is taken from the accounts of Tuttle Company. The company uses the periodic inventory method. Based on this information, the inventory at December 31, Year 21 is:

Correct AnswerverifiedShow Answer

Under a periodic inventory system, the buyer does not use which of the following accounts in recording purchases and related transactions?

Correct AnswerverifiedShow Answer

Merchandising businesses include retail companies and manufacturing companies.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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