• Question 1

2 out of 2 points

Based on the following income statement what is the Net Profit Margin Ratio?

Cinnamon and Spice., Inc.

Income Statement

As of Dec. 31, 200X

Revenue:

Sales \$180,000

Expenses:

Selling expense 84,000

Operating expense 18,000

Interest expense 11,000

Other expense 7,000

Total expense 120,000

Net Income \$60,000

33.33%

66.67%

3%

1.5%

• Question 2

2 out of 2 points

Company A has assets of \$2,000,000, liabilities = 400,000 and equity = \$1,600,000.

What is the debt to asset ratio for Company A?

20%

25%

50%

80%

?

• Question 1

0 out of 0 points

Company A has assets of \$1,000,000, liabilities = 400,000 and equity = \$600,000.

What is the debt to asset ratio for Company A?

40%

60%

100%

20%

• Question 2

0 out of 0 points

Based on the following income statement what is the Net Profit Margin Ratio?

Cinnamon and Spice., Inc.

Income Statement

12/31/2008

Revenue:

Sales \$200,000

Expenses:

Selling expense 112,000

Operating expense 28,000

Interest expense 25,000

Other expense 15,000

Total expense 180,000

Net Income \$20,000

10%

20%

180%

80%

?

CH 6

• Question 1

2 out of 2 points

Sales with terms 2/ 10, n/ 30 means:

The buyer gets a 10 percent discount for payment within 30 days.

The buyer gets 2 percent discount for payment within 10 days.

The buyer gets a 10 percent discount for payment within 10 days.

The buyer gets a 2 percent discount for payment within 30 days.

• Question 2

2 out of 2 points

A \$ 1,000 sale is made on May 1 with terms 2/ 10, n/ 30. What amount, if received on May 9, will the customer’s check be?

\$1,000

\$ 900

\$ 980

\$ 800

• Question 3

2 out of 2 points

A company has net sales of \$500,000 and cost of goods sold of \$400,000. The company’s gross profit percentage is:

80%

20%

50%

10%

• Question 4

2 out of 2 points

Company Alpha has Sales of \$800,000, Sales Discounts of \$40,000 and Sales Returns of \$50,000. How will this be shown on the Income Statement?

With net sales of \$710,000

With net sales of \$890,000

With net sales of \$790,000

With net sales of \$810,000

• Question 5

2 out of 2 points

On March 1, 200X Bravo Company sells \$6,000 of services on credit terms offering a 2% discount if paid within ten days. They are paid on March 3. The customer takes the discount, what is Bravo Company’s accounting entry on March 3, 200X?

Debit cash \$6,000; credit accounts receivable \$6,000.

Debit cash \$5,880; credit accounts receivable \$6,000.

Debit cash \$5,880; credit accounts receivable \$5,880.

Debit cash \$5,880; debit sales discount \$120; credit accounts receivable \$6,000.

\$6,000 minus \$120 = \$5,880 payment.

• Question 6

2 out of 2 points

The accounting entry for a sales return includes:

A debit to the sales account and a credit to cash.

A credit to the sales account and a debit to cash.

A debit to the sales return account and a credit to cash.

A credit to inventory and a debit to the sales return account.

• Question 1

0 out of 0 points

Sales with terms 2/ 10, n/ 30 means:

The buyer gets a 10 percent discount for payment within 30 days.

The buyer gets 2 percent discount for payment within 10 days.

The buyer gets a 10 percent discount for payment within 10 days.

The buyer gets a 2 percent discount for payment within 30 days.

• Question 2

0 out of 0 points

A \$ 1,000 sale is made on May 1 with terms 2/ 10, n/ 30. What amount, if received on May 9, will be considered payment in full?

\$ 1,000

\$ 900

\$ 800

\$ 980

• Question 3

0 out of 0 points

A company has net sales of \$500,000 and cost of goods sold of \$400,000. The company’s gross profit percentage is:

80%

20%

50%

10%

• Question 4

0 out of 0 points

Company Alpha has Sales of \$800,000, Sales Discounts of \$40,000 and Sales Returns of \$50,000. How will this be shown on the Income Statement?

With net sales of \$710,000

With net sales of \$890,000

With net sales of \$790,000

• Question 1

2 out of 2 points

Based on the following income statement what is the Net Profit Margin Ratio?

Cinnamon and Spice., Inc.

Income Statement

As of Dec. 31, 200X

Revenue:

Sales \$180,000

Expenses:

Selling expense 84,000

Operating expense 18,000

Interest expense 11,000

Other expense 7,000

Total expense 120,000

Net Income \$60,000

33.33%

66.67%

3%

1.5%

• Question 2

2 out of 2 points

Company A has assets of \$2,000,000, liabilities = 400,000 and equity = \$1,600,000.

What is the debt to asset ratio for Company A?

20%

25%

50%

80%

?

• Question 1

0 out of 0 points

Company A has assets of \$1,000,000, liabilities = 400,000 and equity = \$600,000.

What is the debt to asset ratio for Company A?

40%

60%

100%

20%

• Question 2

0 out of 0 points

Based on the following income statement what is the Net Profit Margin Ratio?

Cinnamon and Spice., Inc.

Income Statement

12/31/2008

Revenue:

Sales \$200,000

Expenses:

Selling expense 112,000

Operating expense 28,000

Interest expense 25,000

Other expense 15,000

Total expense 180,000

Net Income \$20,000

10%

20%

180%

80%

?

CH 6

• Question 1

2 out of 2 points

Sales with terms 2/ 10, n/ 30 means:

The buyer gets a 10 percent discount for payment within 30 days.

The buyer gets 2 percent discount for payment within 10 days.

The buyer gets a 10 percent discount for payment within 10 days.

The buyer gets a 2 percent discount for payment within 30 days.

• Question 2

2 out of 2 points

A \$ 1,000 sale is made on May 1 with terms 2/ 10, n/ 30. What amount, if received on May 9, will the customer’s check be?

\$1,000

\$ 900

\$ 980

\$ 800

• Question 3

2 out of 2 points

A company has net sales of \$500,000 and cost of goods sold of \$400,000. The company’s gross profit percentage is:

80%

20%

50%

10%

• Question 4

2 out of 2 points

Company Alpha has Sales of \$800,000, Sales Discounts of \$40,000 and Sales Returns of \$50,000. How will this be shown on the Income Statement?

With net sales of \$710,000

With net sales of \$890,000

With net sales of \$790,000

With net sales of \$810,000

• Question 5

2 out of 2 points

On March 1, 200X Bravo Company sells \$6,000 of services on credit terms offering a 2% discount if paid within ten days. They are paid on March 3. The customer takes the discount, what is Bravo Company’s accounting entry on March 3, 200X?

Debit cash \$6,000; credit accounts receivable \$6,000.

Debit cash \$5,880; credit accounts receivable \$6,000.

Debit cash \$5,880; credit accounts receivable \$5,880.

Debit cash \$5,880; debit sales discount \$120; credit accounts receivable \$6,000.

\$6,000 minus \$120 = \$5,880 payment.

• Question 6

2 out of 2 points

The accounting entry for a sales return includes:

A debit to the sales account and a credit to cash.

A credit to the sales account and a debit to cash.

A debit to the sales return account and a credit to cash.

A credit to inventory and a debit to the sales return account.

• Question 1

0 out of 0 points

Sales with terms 2/ 10, n/ 30 means:

The buyer gets a 10 percent discount for payment within 30 days.

The buyer gets 2 percent discount for payment within 10 days.

The buyer gets a 10 percent discount for payment within 10 days.

The buyer gets a 2 percent discount for payment within 30 days.

• Question 2

0 out of 0 points

A \$ 1,000 sale is made on May 1 with terms 2/ 10, n/ 30. What amount, if received on May 9, will be considered payment in full?

\$ 1,000

\$ 900

\$ 800

\$ 980

• Question 3

0 out of 0 points

A company has net sales of \$500,000 and cost of goods sold of \$400,000. The company’s gross profit percentage is:

80%

20%

50%

10%

• Question 4

0 out of 0 points

Company Alpha has Sales of \$800,000, Sales Discounts of \$40,000 and Sales Returns of \$50,000. How will this be shown on the Income Statement?

With net sales of \$710,000

With net sales of \$890,000

With net sales of \$790,000