STRAYER ACCT 557 QUIZ Wk 5 Chap 5 & 61. Indicate which one of the following would appear on the income statement of both a merchandising company and a service company.2. Sales revenues are usually considered earned when3. Gross profit doesnot appear4. A sales discount does not5. Two categories of expenses for merchandising companies are6. The journal entry to record a credit sale is7. During 2013, merchandise inventory for Falcon Supplies Company decreased by $50,000. If the income statement for 2013 reported cost of goods sold of $650,000, purchases during the year must have been8. GAAPâs provision for ownership of goods (goods-in-transit or consigned goods), as well as which costs to include in inventory, as compared to IFRS are:9. A company uses the periodic inventory method and the beginning inventory is overstated by $7,000 because the ending inventory in the previous period was overstated by $7,000. The amounts reflected in the current end of the period balance sheet are10. The lower-of-cost-or-market basis of valuing inventories is an example of11. The factor which determines whether or not goods should be included in a physical count of inventory is12. GAAPâs definition for inventory and provision of guidelines for inventory accounting, as compared to IFRS are:13. Which of the following should be included in the physical inventory of a company?14. Netta Shutters has the following inventory information. A physical count of merchandise inventory on November 30 reveals that there are 45 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is15. A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $250 and used FIFO costing, the gross profit for the period would be
