During the month of March, Wang Company May 13, 2016 Original Assignment Answers 1.During the month of March, Wang Company sold merchandise on account for $9,100. The merchandise had cost Wang $4,900. Which of the following represents the effects of this transaction on Wang’s financial statements? (Points : 2) Row One Row Two Row Three Row Four 2.What is the relationship between gross margin and net income? (Points : 2) Gross Margin – Merchandise Inventory at the end of the period = Net Income Gross Margin – Selling and Administrative Expenses = Net Income Gross Margin + Selling and Administrative Expenses = Net income Sales Revenue x Gross Margin Percentage= Net Income 3.Which of the following is not a period cost? (Points : 2) Advertising Expense Sales Commissions Cost of Goods Sold Interest Expense 4.Cost of Goods Sold is reported as a(n): (Points : 2) asset on the balance sheet. direct reduction of equity on the statement of changes in stockholders’ equity. addition to Sales Revenue on the income statement. expense on the income statement. 5.Whitney Company’s Cost of Goods Available for Sale for 2010 was $610,000. Which of the following statements is true? (Points : 2) If the merchandise inventory at the end of the year was $100,000, the Cost of Goods Sold was $510,000. If the merchandise inventory at the end of the year was $100,000, the Cost of Goods Sold was $710,000. If the beginning inventory was $95,000, the Cost of Goods Sold was $515,000. If the beginning inventory was $95,000, the Cost of Goods sold was $705,000. 6.Merchandising businesses: (Points : 2) manufacture the goods they sell. generate revenue primarily by providing services to customers. buy the merchandise they sell from suppliers. include dry cleaning companies and law firms. 7.Gruver Company maintains perpetual inventory records. The company’s inventory account had a $5,500 balance as of December 31, 2010. On that date, a physical count of inventory showed only $5,300 of merchandise in stock. The write-down to recognize the missing inventory will: (Points : 2) decrease assets. increase expense. decrease equity. all of the above. 8.Lemon Company sent goods to a customer FOB delivery. What effect will these freight costs have on Lemon company’s financial statements? (Points : 2) Row One Row Two Row Three Row Four 9.Gross margin is equal to: (Points : 2) Sales Revenue divided by the balance in Merchandise Inventory at the end of the period. the balance in Merchandise Inventory at the beginning of the period plus the amount of inventory purchased during the year. Sales Revenue minus Cost of Goods Sold. Sales Revenue minus Cost of Goods Available for Sale. 10.Which of the following statements accurately describes a fidelity bond? (Points : 2) Insurance that the company buys to protect itself from loss due to employee dishonesty Proper procedures for processing accounting transactions Procedures to provide reasonable assurance that the objectives of a company are accomplished Guidelines that limit the actions and authority of different levels of management 11.Which of the following is not a reason why a business needs strong internal controls over cash? (Points : 2) A small volume of high-denomination currency represents a significant amount of value. Ownership of cash is difficult to prove. Cash has universal appeal. Money is the common unit of measurement in business. 12.What documentation issued by a bank increases a company’s checking account balance at the bank? (Points : 2) An account invoice A debit memo A credit memo A certified check 13.What documentation issued by a bank increases a company’s checking account balance at the bank? (Points : 2) An account invoice A debit memo A credit memo A certified check 14.In preparing a bank reconciliation, typical adjustments to the bank balance include: (Points : 2) NSF checks. interest earned on the account. accounts or notes receivable collected by the bank. deposits in transit. 15.Wren Company accepted a check from Jay Company as payment for services rendered. Wren’s bank statement revealed that the Jay check was an NSF check. Wren has not decided to write off the account. Exclusive of any bank charges what will the entry to record the NSF check have on the accounting equation of Wren Company? Row Total Assets Total Equity One No effect No effect Two Decrease Decrease Three Decrease No effect Four No effect Decrease (Points : 2) Row One Row Two Row Three Row Four ORDER A SIMILAR ESSAY WRITTEN FROM SCRATCH at : https://www.topgradehub.com/
