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28. Sales revenue less cost of goods sold is called
a. net income.
b. gross profit.
c. marginal income.
d. net profit.
29. A merchandiser that sells directly to consumers is a
a. wholesaler.
b. service enterprise.
c. retailer.
d. broker.
30 . Select which of the items below will appear on a balance sheet.
Group of answer choices
Accumulated Depreciation
Interest Expense
Retained Earnings
Notes Payable
Common Stock
Cost of Goods Sold
Dividends
Cash
Inventory
Depreciation Expense
Accounts Payable
Sales
31. Select all of the items below that will appear on an income statement.
Salaries payable
Cash
Prepaid rent
Supplies expense
Capital stock
Salaries expense
Sales
Insurance expense
Consulting fees earned
Dividends
Cost of goods sold
Gain on sale of equipment
32. If assets are $130,000 and equity is $85,000, what is the balance of liabilities?
33. The collection of accounts receivable is recorded by a
a. Debit to cash and a credit to sales.
b. Debit to cash and a debit to accounts receivable.
c. Debit to cash and a credit to accounts receivable.
d. Debit to accounts receivable and a credit to cash
34. In the general ledger, a separate "account" is maintained for each
a. Business day.
b. Business transaction.
c. Journal entry.
d. Type of asset and liability and for each element of owners' equity.
35. In the general ledger, a separate "account" is maintained for each
a. Business day.
b. Business transaction.
c. Journal entry.
d. Type of asset and liability and for each element of owners' equity.
36. Posting is the process of
a. Preparing journal entries to describe each business transaction.
b. Transferring debit and credit entries from the journal into the appropriate ledger accounts.
c. Entering information into a computerized database.
d. Determining that the dollar amount of debit entries recorded in the ledger is equal to the dollar amount of credit entries.
37. To understand and use accounting information in making economic decisions, you must understand
a. The nature of economic activities that accounting information describes.
b. Which information is relevant for a particular type of decision that is being made.
c. The assumptions and measurement techniques involved in developing accounting information.
d. All of the choices are correct
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