CHAPTER QUIZ PLS HELP
1.The cost of unsold inventory at the end of the year is classified as a(n) ______ in the ______.
Assets; Balance sheet
Expense; Income statement
Liability; Balance sheet
Revenue; Income statement
2.The cost of the goods that a company sold during a period is shown in its financial statements as ___________ and the cost of the goods that a company still has on hand at the end of the year is shown in the financial statements as ____________.
Cost of goods sold; inventory
Goods on hand; inventory expense
Inventory; cost of goods sold
Sales revenue; cost of goods sold
3.The balance of the Cost of Goods Sold account at the end of the year represents:
The cost of inventory not sold in the current year.
The total sales revenue to customers.
The cost of inventory sold in the current year.
Total purchases of inventory for the year.
4.Baker Fine Foods has beginning inventory for the year of $12,000. During the year, Baker purchases inventory for $150,000 and ends the year with $20,000 of inventory. Baker will report cost of goods sold equal to:
5.Given the information in the table below, what is the company's gross profit?
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
6.LeGrand Corporation reported the following amounts in its income statement:
Sales revenue $440,000
Advertising expense 60,000
Income tax expense 45,000
Cost of goods sold180,000
What was LeGrand's operating income?