商业企业循环习题精选无答案.doc

True / False Questions?1.?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 intermediary 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 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 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 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 records 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 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 ma