Question

Generally, the revenue account for a merchandising business is entitled  

a.	Sales
b.	Net Sales
c.	Gross Sales
d.	Gross Profit

What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?

a.	gross profit
b.	income from operations
c.	net income
d.	gross sales

Expenses that are incurred directly or entirely in connection with the sale of merchandise are classified as  

a.	selling expenses
b.	general expenses
c.	other expenses
d.	administrative expenses

Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense?

a.	selling expense
b.	miscellaneous expense
c.	administrative expense
d.	other expense

The inventory system employing accounting records that continuously disclose the amount of inventory is called  

a.	retail
b.	periodic
c.	physical
d.	perpetual

Answer 1

Generally, the the revenue account for merchandise business is entitled as

A. Sales

In merchandise business revenue reported as Sales.

(Sales-Sales return & allowances)=Net Sales

The term applied to the excess of net revenue from sales over Cost of merchandise sold is.

A. Gross Profit

Gross Profit=(Sales- cost of goods sold)

Expenses that are incurred directly or indirectly in connection with the sale are the example of

A.Selling Expenses

selling Expenses are sales salaries,store depreciation, advertisement expenses etc.

Office salaries, depreciation of office equipment and office supplies are the example of

C. Administrative Expenses

All expenses related to office are administrative Expenses.

The inventory system employing accounting records that continuously disclose the amount Inventory is called

D.Perpetual Inventory system

In perpetual system every purchase and sales recorded in the books of company.