FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Accounting for Merchandising Businesses

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

Cost of merchandise sold is the amount that the merchandising company pays for the merchandise it intends to sell.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

The ratio of net sales to assets measures how effectively a business is using its assets to generate sales.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

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

The adjusting entry to record inventory shrinkage would generally include a debit to Cost of Merchandise Sold.

The abbreviation FOB stands for Free On Board.

Marshall Supplies is a janitorial supply store. Marshall Supplies uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of July:

Under the periodic inventory system, the cost of merchandise sold is recorded when sales are made.

The statement of owner's equity shows

Multiple-step income statements show

Complete the following data taken from the condensed income statements for merchandising Companies A, B, & C.

The form of the balance sheet in which assets, liabilities, and owner's equity are presented in a downward sequence is called the report form.

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

Using the following information, what is the amount of gross profit?

Inventory shortage is recorded when

Discounts taken by the buyer for early payment of an invoice are credited to Sales Discounts by the buyer.

If payment is due by the end of the month in which the sale is made, the invoice terms are expressed as n/30.

The accounts Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight In are found on the balance sheet.

A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called cash discounts.

In the periodic inventory system, purchases of merchandise for resale are debited to the Purchases account.

Under the periodic inventory system, the cost of merchandise sold is equal to the beginning merchandise inventory plus the cost of merchandise purchased plus the ending merchandise inventory.