1. What kind of inventory system most applicable to sari-sari stores?A. Merchandise InventoryB. MerchandisersC. Perpetual Inventory systemD. Periodic Inventory System2. What accounting term is used for the cost of goods unsold at the end of the accountingperiod?C. Perpetual InventoryD. Periodic InventoryA. Cost of Goods UnsoldB. Merchandise Inventory3. Cost of Goods Sold (COGS) includes the following EXCEPT:A. Factory overhead expenses.B. The cost of storing products the business sells.C. Indirect labor costs for workers who produce the productsD. The cost of products or raw materials, including freight or shipping charges.4. The following are COGS formula to found in the cost of goods sold during an accountingperiodA. Gross Income= Gross Revenue-COGSB. Net Income+ Revenue-COGS- ExpensesC. Beginning Inventory+ Purchases During the Period-Ending Inventory.D. Beginning Inventory – Purchase Return and Allowances - Ending Inventory.5. Which of the following statement are TRUE?A. Cost of goods sold is also know as cost of sales.B. Cost of goods sold is the direct cost of inventory that we have sold during the year.C. Cost of goods sold is an expense charged against sales to work out a gross profit.D. None of the above6. Which of the following describes a sales return?A. A customer receives a price discount for buying bulk.B. A customer return merchandise that is defective to the seller.C. An amount that a business receives from selling its goods or services.D. A customer does not return defective merchandise but receives a reduction in theamount it owes to the seller.7. What cost associated with transporting goods from seller's to buyer's place of business?A. Cost of Goods SoldC. Transportation ExpenseB. FreightD. Transportation of Goods Expense8. How do you calculate cost of goods sold on an income statement?A. ČOGS+ Beginning Inventory+ Purchases During the Period-Ending Inventory.B. COGS Beginning Inventory+ Additional Inventory - Ending InventoryC. Gross Income= Gross Revenue-COGSD. Net Income+ Revenue-COGS- Expenses9. Cost of goods sold is classified as which type of account?C. LiabilityD. RevenueA. AssetB. Expense10. Mrs. Huazz Sari-Sari store has a net sales of Php. 10,000 and the cost of goods sold arePhp. 6,000. What is the gross profit of Mrs. Huazz at the end of the month?А. Php. 4,000B. Php. 6,000C. Php. 10,000D. Php.16.000

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Description: 1. What kind of inventory system most applicable to sari-sari stores?A. Merchandise InventoryB. MerchandisersC. Perpetual Inventory systemD. Periodic Inventory System2. What accounting term is used for the cost of goods unsold at the end of the acco

Answered: 2. What accounting term is used for the…

Business

Accounting

2. What accounting term is used for the cost of goods unsold at the end of the accounting period? A. Cost of Goods Unsold B. Merchandise Inventory C. Perpetual Inventory D. Periodic Inventory

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.1KTQ: Merchandise Accounting Merchandise Inventory Raw materials Work in process Finished goods Gross...

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Merchandise Accounting Merchandise Inventory Raw materials Work in process Finished goods Gross profit Net sales Sales revenue Cost of goods available for sale Cost of goods sold Perpetual system Periodic system Transportation-In Purchases FOB destination point FOB shipping point Gross profit ratio An adjunct account used to record freight costs paid by the buyer. A system in which the Inventory account is increased at the time of each purchase and decreased at the time of each sale. Terms that require the seller to pay for the cost of shipping the merchandise to the buyer. Terms that require the buyer to pay for the shipping costs. A system in which the Inventory account is updated only at the end of the period. Beginning inventory plus cost of goods purchased. An account used in a periodic inventory system to record acquisitions of merchandise. Sales revenue less sales returns and allowances and sales discounts. Cost of goods available for sale minus ending inventory. Gross profit divided by net sales. Net sales less cost of goods sold. The cost of unfinished products in a manufacturing company. The account wholesalers and retailers use to report inventory held for sale. The inventory of a manufacturer before the addition of any direct labor or manufacturing overhead. A manufacturers inventory that is complete and ready for sale. A representation of the inflow of assets from the sale of a product.
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