LA SALLE UNIVERSITY RV

DEL ROSARIO COLLEGE OF

BUSINESS ACCTBA1 QUIZ
NO. 4 QUESTIONNAIRE AND
ANSWER SHEET
NAME________________
__________________SEC
TION_________DATE___
______________True/False
(One Point Each for a Total of 10
Points)Indicate whether the
statement is true or false.F 1.
Under the periodic inventory
system, the cost of goods sold is
equal to the beginning
merchandise inventory plus the
cost of goods purchased plus the
ending merchandise inventory.F
2. In a perpetual inventory
system, the Merchandise
Inventory account is only used to
reflect the beginning inventory.F
3. In a multi-step income
statement the dollar amount for
income from operations is always
the same as net income.T 4. The
single-step income statement is
easier to prepare, but a criticism
of this format is that gross profit
and income from operations are
not readily available.T 5. In the
Merchandising Income
Statement, sales will be reduced
by sales discounts and sales
returns and allowances to arrive
at net sales.T 6. Under the
perpetual inventory system, the
cost of merchandise sold is
recorded when sales are made.T
7. The effect of a sales return and
allowance is a reduction in sales
revenue and a decrease in cash or
accounts receivable.F 8. A buyer
who acquires merchandise under
credit terms of 1/10, n/30 has 30
days after the invoice date to take
advantage of the cash discount.F
9. The due date of a 60-day note
dated July 10 is September 10.F
10. The maturity value of a 12%,
60-day note for P5,000 is P5,600.