Accounting 201 Test #2

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32 Questions - Developed by: - Developed on: - 5,045 taken

  • 1
    Income from operations is gross profit less
  • 2
    An enterprise which sells goods to customers is known as a
  • 3
    Which of the following would NOT be considered a merchandising company?

  • 4
    A merchandising company that sells directly to consumers is a
  • 5
    Two categories of expenses for merchandising companies are
  • 6
    The primary source of revenue for a wholesaler is

  • 7
    Sales revenue less cost of goods sold is called
  • 8
    After gross profit is calculated, operating expenses are deducted to determine
  • 9
    Inventories affect
  • 10
    Inventory is

  • 11
    Items waiting to be used in production are considered to be
  • 12
    In a manufacturing company, inventory that is ready for sale is called
  • 13
    The factor which determines whether or not goods should be included in a physical count of inventory is
  • 14
    If goods in transit are shipped FOB destination
  • 15
    An auto manufacturer would classify vehicles in various stages of production as
  • 16
    Which of the following should be included in the physical inventory of a company?

  • 17
    Manufacturers usually classify inventory into all of the following general categories except
  • 18
    Which of the following is NOT an objective of a system of internal controls?
  • 19
    Internal controls are concerned with
  • 20
    All of the following requirements about internal controls were enacted under the Sarbanes-Oxley Act except

  • 21
    Internal control is defined, in part, as a plan that safeguards
  • 22
    Which of the following is not one of the main factors that contribute to fraudulent activity?
  • 23
    The most important element of the fraud triangle is
  • 24
    Internal controls are NOT designed to safeguard assets from
  • 25
    Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of
  • 26
    Having one person responsible for the related actives of ordering merchandise, receiving goods, and paying for them

  • 27
    The custodian of a company asset should
  • 28
    Claims for which formal instruments of credit are issued as proof of the debt are
  • 29
    Interest is usually associated with
  • 30
    The receivable that is usually evidenced by a formal instrument of credit is a(n)

  • 31
    Which of the following receivables would NOT be classified as an "other receivable"?
  • 32
    Notes or accounts receivables that result from sales transactions are often called

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