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================================================= ACC 290 Week 3 Discussion Question 1
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• Question 1 The operating cycle of a merchandising company is ordinarily shorter than that of a service company .
• Question 2 The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm .
• Question 3 Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for which it must pay the shipping charges . Which of the following is one part of the required journal entry when Jax pays the shipping charges of $ 200 ?
• Question 4 Sales Discounts is a contra asset account .
• Question 5 Which statement is true when recording the sale of goods for cash in a perpetual inventory system ?
• Question 6 Net income is $ 15,000 , operating expenses are $ 20,000 , and net sales total $ 75,000 . How much is cost of goods sold ?
• Question 7 Which one of the following will result in gross profit ?
• Question 8 Under what system is cost of goods sold determined at the end of an accounting period ?
• Question 9 Net income is $ 15,000 , operating expenses are $ 20,000 , net sales total $ 75,000 , and sales revenues total $ 95,000 . How much is the profit margin ?
• Question 10 In a periodic inventory system , when is the cost of the merchandise sold determined ?

================================================= ACC 290 Week 3 Discussion Question 1

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What are the steps in completing the accounting cycle ? How do the different steps affect the financial statements ? What is the effect on the financial statements of missing a step when completing the