商业企业循环习题精选无答案

1、True / False Questions1.Merchandise inventory consists of products that a company acquires to resell to customers.2.A service company earns net income by buying and selling merchandise.3.Gross profit is also called gross margin.4.Cost of goods sold is also called cost of sales.5.A wholesaler is an i

2、ntermediary that buys products from manufacturers or other wholesalers and sells them to consumers.6.A retailer is an intermediary that buys products from manufacturers and sells them to wholesalers.7.Cost of goods sold represents the cost of buying and preparing merchandise for sale.8.A company had

3、 sales and cost of goods sold of $350,000 and $200,000, respectively. Its gross profit equals $150,000.9.A company had net sales and cost of goods of $545,000 and $345,000, respectively. Its gross margin equals $890,000.10.A company had a gross profit of $300,000 based on sales of $400,000. Its cost

4、 of goods sold equals $700,000.11.A merchandising companys operating cycle begins with the sale of merchandise and ends with the collection of cash from the sale.12.Merchandise inventory is reported in the long-term assets section of the balance sheet.13.Cash sales shorten the operating cycle for a

5、merchandiser; credit purchases lengthen operating cycles.14.Assets tied up in inventory are not productive assets.15.A perpetual inventory system requires updating of the inventory account only at the beginning of an accounting period.16.A perpetual inventory system continually updates accounting re

6、cords for inventory transactions.17.Beginning merchandise inventory plus the net cost of purchases is the merchandise available for sale.18.The acid-test ratio is also called the quick ratio.19.Quick assets include cash, inventory, and current receivables.20.The acid-test ratio is defined as current

7、 assets divided by current liabilities.21.A common rule of thumb is that a companys acid-test ratio should be at least 2 or a company may face near-term liquidity problems.26.The profit margin ratio is gross margin divided by total assets.27.The gross margin ratio reflects the relation between sales

8、 and cost of goods sold.28.A company had net sales of $340,500, its cost of goods sold was $257,000, and its net income was $13,750. The companys gross margin ratio equals 24.5%.29.J.C. Penney had net sales of $24,750 million, cost of goods sold of $16,150 million, and net income of $837 million. It

9、s gross margin ratio equals 3.4%.30.The Merchandise Inventory account balance at the end of the current period is equal to the amount of beginning merchandise inventory for the next period.Multiple Choice Questions75.A merchandising company:A.Earns net income by buying and selling merchandise.B.Can

10、buy products from manufacturers and sell to retailers.C.Can buy products from manufacturers and sell them to consumers.D.Can be a wholesaler or a retailer.E.All of these.76.A merchandising company:A.Earns net income by buying and selling merchandise.B.Receives fees only in exchange for services.C.Ea

11、rns profit from commissions only.D.Earns profit from fares only.E.Buys products from consumers.78.A company had sales of $695,000 and cost of goods sold of $278,000. Its gross margin equals:A.$(417,000).B.$695,000.C.$278,000.D.$417,000.E.$973,000.79.A company had sales of $375,000 and its gross prof

12、it was $157,500. Its cost of goods sold equals:A.$(217,000).B.$375,000.C.$157,500D.$217,500.E.$532,500.80.Gross profit:A.Is also called gross margin.B.Less other operating expenses equals income from operations.C.Equals net sales less cost of goods sold.D.Must cover all operating expenses to yield a

13、 return for the owner of the business.E.All of these.81.Merchandise inventory:A.Is reported on the balance sheet as a current asset.B.Refers to products a company owns and intends to sell.C.Can include the cost of shipping the goods to the store and making them ready for sale.D.Does not appear on th

14、e balance sheet of a service company.E.All of these.82.The operating cycle of a merchandising company:A.Begins with the purchase of merchandise.B.Ends with the collection of cash from the sale of merchandise.C.Can vary in length among different merchandising companies.D.Sometimes involves accounts r

15、eceivable.E.All of these.83.Merchandise inventory:A.Is a long-term asset.B.Is a current asset.C.Includes supplies.D.Is classified with investments on the balance sheet.E.Must be sold within one month.84.The operating cycle for a merchandiser that sells only for cash moves from:A.Purchases of merchan

16、dise to inventory to cash sales.B.Purchases of merchandise to inventory to accounts receivable to cash sales.C.Inventory to purchases of merchandise to cash sales.D.Accounts receivable to purchases of merchandise to inventory to cash sales.E.Accounts receivable to inventory to cash sales.85.The curr

17、ent periods ending inventory is:A.The next periods beginning inventory.B.The current periods cost of goods sold.C.The prior periods beginning inventory.D.The current periods net purchases.E.The current periods beginning inventory.86.Beginning inventory plus net purchases is:A.Cost of goods sold.B.Me

18、rchandise available for sale.C.Ending inventory.D.Sales.E.Shown on the balance sheet.87.The acid-test ratio:A.Is also called the quick ratio.B.Measures profitability.C.Measures inventory turnover.D.Is generally greater than the current ratio.E.All of these.88.The quick assets are defined as:A.Cash,

19、short-term investments, and inventory.B.Cash, short-term investments, and current receivables.C.Cash, inventory, and current receivables.D.Cash, noncurrent receivables, and prepaid expenses.E.Accounts receivable, inventory, and prepaid expenses89.ABC Corporations total quick assets were $5,888,000,

20、its current assets were $11,700,000 and its current liabilities were $8,000,000. Its acid-test ratio equals:A.0.50.B.0.68.C.0.74.D.1.50.E.2.20.90.A companys current assets were $17,980, its quick assets were $11,420 and its current liabilities were $12,190. Its quick ratio equals:A.0.94.B.1.07.C.1.4

21、8.D.1.57.E.2.40.92.The acid-test ratio differs from the current ratio in that:A.Liabilities are divided by current assets.B.Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio.C.The acid-test ratio measures profitability and the current ratio does not.D.The acid-t

22、est ratio excludes short-term investments from the calculation.E.The acid-test ratio is a measure of liquidity but the current ratio is not.Breanna Boutique reported the following year-end information:93.The current ratio and acid-test ratio for the boutique are _ and _, respectively:A.1.8 and 1B.1.

23、97 and 1.52C.2.73 and 1.52D.3.50 and 0.90E.None of theseCurrent ratio = $460,500/$131,500 = 3.50Acid-test ratio = $118,000/$131,500 = 0.9094.Based on the ratios and analysis of the account balances for Breanna Boutique, the company is:A.likely to face near-term liquidity problems.B.unlikely to face

24、near-term liquidity problems.C.likely raising liquidity concerns unless cash can be generated from inventory sales.D.unlikely raising liquidity concerns.E.Both A and C.96.A companys gross profit was $83,750 and its net sales were $347,800. Its gross margin ratio equals:A.4.2%.B.24.1%.C.75.9%.D.$83,750.E.$264,050.97.A companys net sales were $676,600, its cost of good sold was $236,810 and its net income was $33,750. Its gross margin ratio equals:A.5%.B.9.6%.C.35%.D.65%.E.285.7%.98.A company h