ACCT 201 TEST 3

Which of the following is not a difference between a retail business and a service business?

What is the term applied to the excess of sales over the cost of goods sold?

Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a

Which of the following accounts has a normal debit balance?

Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as

Which of the following accounts usually has a debit balance?

Who is responsible for the freight costs when the terms are FOB shipping point?

Who is responsible for the freight cost when the terms are FOB destination?

What type of company would normally offer trade discounts to its customers?

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are

When the perpetual inventory system is used, the inventory sold is debited to

accounting records continuously disclose the amount of inventory

What is the major difference between a periodic and perpetual inventory system?

Under the periodic inventory system, the journal entry to record the purchase of inventory will include a debit to

When comparing a retail business to a service business, the financial statement that changes the least is the

The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a

Which of the following accounts will not be found in the Cost of Goods Sold section of the income statement for a company using the periodic inventory method?