Question

1. The retained earnings statement shows

	net income, dividends, and beginning and ending retained earnings
	total assets and beginning and ending retained earnings
	net income and ending retained earnings only

2. Which of the following accounts has a normal debit balance?

	Accounts Payable
	Sales Returns and Allowances
	Sales
	Interest Revenue

3. In credit terms of 3/15, n/45, the "45" represents the

	full amount of the invoice
	number of days when the entire amount is due
	percent of the cash discount

4. Merchandise with a sales price of $800 is sold on account. The journal entry to record the sale assuming a periodic inventory system would be

	dr   Sales $800            cr   Accounts Receivable     $800
	dr   Accounts Receivable   $800           cr   Sales $800
	dr   Accounts Receivable    $800           cr    Sales $800 dr   COGS                         $400            cr Inventory     $400

5. Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a

	dr    Inventory                                            cr    Purchase Returns and Allowances
	dr    Cost of Merchandise Sold (COGS)       cr    Purchase Returns and Allowances
	dr    Accounts Payable                               cr    Inventory

Answer 1

Q1.The retained earnings statement shows-

Ans1.net income, dividends, and beginning and ending retained earnings

Q2.Which of the following accounts has a normal debit balance?

Ans2. Sales Returns and Allowances

Q3. In credit terms of 3/15, n/45, the "45" represents the

Ans3. number of days when the entire amount is due

Q4. Merchandise with a sales price of $800 is sold on account. The journal entry to record the sale assuming a periodic inventory system would be

Ans4. dr   Accounts Receivable   $800           cr   Sales $800

Q5. Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a

Ans5. dr    Accounts Payable                               cr    Inventory