learning objective 5 5 1 cost of goods sold appears on both a multi step income stat 4311524

Learning Objective 5-5

1) Cost of goods sold appears on both a multi-step income statement and a single-step income statement.

2) Both purchase discounts and sales discounts appear on the income statement of a company that uses the perpetual inventory method.

3) Referring to the following table, what is Operating income?

Sales revenue	$460,000
Cost of goods sold	300,000
Operating expenses	85,000
Sales discounts	20,000
Sales returns and allowances	15,000
Interest revenue	5,000

A) $40,000

B) $55,000

C) $160,000

D) $190,000

4) Referring to the following table, what is the Net income?

Sales revenue	$460,000
Cost of goods sold	300,000
Operating expenses	85,000
Sales discounts	20,000
Sales returns and allowances	15,000
Interest revenue	5,000

A) $35,000

B) $45,000

C) $60,000

D) $180,000

5) Which of the following is subtracted from Net sales revenue to arrive at Gross profit?

A) Cost of goods available for sale

B) Cost of goods sold

C) Sales discounts and sales returns and allowances

D) Operating expenses

6) Which of the following is subtracted from Gross profit to arrive at Operating income?

A) Cost of goods available for sale

B) Cost of goods sold

C) Sales discounts and sales returns and allowances

D) Operating expenses

7) Where do Inventory and Cost of goods sold appear?

A) On the balance sheet and statement of retained earnings, respectively

B) On the statement of retained earnings and income statement, respectively

C) On the balance sheet and income statement, respectively

D) On the income statement and statement of cash flows, respectively

8) Which of the following is subtracted from Sales revenue to arrive at Net sales revenue?

A) Cost of goods available for sale

B) Cost of goods sold

C) Sales discounts and sales returns and allowances

D) Operating expenses

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