Question 1
Net income is gross profit less
• financing expenses.
• operating expenses.
• other expenses and losses.
• other expenses.

Question 2
On November 2, 2014, Kasdan Company has cash sales of $6,000 from merchandise having a cost of $3,600. The entries to record the day's cash sales will include:
• a $3,600 credit to Cost of Goods Sold.
• a $6,000 credit to Cash.
• a $3,600 credit to Inventory.
• d a $6,000 debit to Accounts Receivable.

Question 3
Glenn Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Glenn Company pays within the discount period?
• $8,100
• $8,280
• $8,820
• $9,000

Question 4
When a seller grants …show more content…

• $45,000.
• $45,900.
• $62,100.

Question 15
A system of internal control
• is infallible.
• can be rendered ineffective by employee collusion.
• invariably will have costs exceeding benefits.
• is premised on the concept of absolute assurance.

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Question 16
A credit balance in Cash Over and Short is reported as a(n)
• asset.
• liability.
• miscellaneous expense.
• miscellaneous revenue.

Question 17
The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer’s check for $1,300 was returned because it was NSF. A customer’s check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was
• $42,048.
• $42,192.
• $43,128.
• $51,392.

Question 18
A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would
• credit Cash Over and Short for $3.
• credit Miscellaneous Revenue for $3.
• debit Cash Over and Short for $3.
• debit Miscellaneous Expense for $3.

Question 19
Jolene is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse.