Multiple choice

1. Earnings per share shows

each common share's piece of revenue.

each common share's piece of net income.

each common share's piece of stockholders' equity.

each common share's piece of retained earnings

2. At the end of the accounting period, the balances of which types of accounts are carried over to the next accounting period?

revenue, liability, and dividend

asset, expense, and dividend

revenue, expense, and dividend

asset, liability, and stockholders' equity

3. Holmes Company sold merchandise on account. The retail price was $10,000; the cost of the merchandise was $8,000. The journal entry to record this transaction is

debit Accounts Receivable $8,000; credit Sales Revenue $8,000; and debit Cost of Goods Sold $10,000; credit Merchandise Inventory $10,000.

debit Accounts Receivable $10,000; credit Sales Revenue $10,000; and debit Cost of Goods Sold $8,000; credit Merchandise Inventory $8,000.

debit Sales Revenue $8,000; credit Accounts Receivable $8,000; and dedit Merchandise Inventory $10,000; credit Cost of Goods Sold $10,000.

debit Sales Revenue $10,000; credit Accounts Receivable $10,000; and debit Merchandise Inventory $8,000; credit Cost of Goods Sold $8,000. 

Holmes Company received payment from a customer within the discount period; the payment terms of the sale were 2/10, n/30.

4. The journal entry to record this transaction is

debit Accounts Receivable $9,800; debit Sales Discounts $200; credit Cash $10,000.

debit Cash $10,000; credit Sales Discounts $200; credit Accounts Receivable $9,800.

debit Accounts Receivable $10,000; credit Cash $9,800: credit Sales Discounts $200.

debit Cash $9,800; debit Sales Discounts $200; credit Accounts Receivable $10,000