Questions from Financial Accounting

Q: The word market as used in “the lower of cost or

The word market as used in “the lower of cost or market” generally means a. liquidation price. b. original cost. c. retail market price. d. current replacement cost.

Q: The sum of ending inventory and cost of goods sold is

The sum of ending inventory and cost of goods sold is a. gross profit. b. cost of goods available (or cost of goods available for sale). c. net purchases. d. beginning inventory.

Q: The following data come from the inventory records of Dapper Company:

The following data come from the inventory records of Dapper Company: Based on these facts, the gross profit for Dapper Company is a. $224,000. b. $193,000. c. $150,000. d. $203,000.

Q: Patterson Company ended the month of March with inventory of $20

Patterson Company ended the month of March with inventory of $20,000. Patterson expects to end April with inventory of $13,000 after selling goods with a cost of $93,000. How much inventory must Patte...

Q: Two financial ratios that clearly distinguish a discount chain such as Walmart

Two financial ratios that clearly distinguish a discount chain such as Walmart from a high-end retailer such as Gucci are the gross profit percentage and the rate of inventory turnover. Which set of rel...

Q: Sales are $500,000 and cost of goods sold is

Sales are $500,000 and cost of goods sold is $320,000. Beginning and ending inventories are $28,000 and $38,000, respectively. How many times did the company turn its inventory over during this period...

Q: Trudell, Inc., reported the following data: /

Trudell, Inc., reported the following data: Trudell’s gross profit percentage is a. 51.0. b. 48.0. c. 49.0. d. 55.7.

Q: Crystal Aquarium Supplies had the following beginning inventory, net purchases,

Crystal Aquarium Supplies had the following beginning inventory, net purchases, net sales, and gross profit percentage for the first quarter of 2016: By the gross pro&i...

Q: An error understated Bowerston Corporation’s December 31, 2016, ending inventory

An error understated Bowerston Corporation’s December 31, 2016, ending inventory by $54,000. What effect will this error have on total assets and net income for 2016? Assets…………………….Net income a. No...

Q: An error understated Grand Company’s December 31, 2016, ending inventory

An error understated Grand Company’s December 31, 2016, ending inventory by $27,000. What effect will this error have on net income for 2017? a. Understate b. No effect c. Overstate