CH 7 Inventory Merchandising

The number of days within which the buyer has to pay to receive the cash discount

If the gross profit of a retail store is $20,000 & rent increases by $2,000, which is true?

Inventory is shown on the financial statements of a business:

Discount from MSRP usually given by the manufacturers to merchandisers to sell their products

Sales discount is a contra-revenue account used to track the amount of discount taken by cust

Expense account that is used to track the cost of inventory sold during a particular period

Purchase returns and allowances cause accounts payable and merchandise inventory to decrease

The terms indicating when a buyer has to pay & whether there are discounts for paying early

A physical count that is lower than the recorded amount in the merchandise inventory account

Purchase discounts allow the seller to save money by paying early

The maximum number of days that the buyer can wait before paying the full amount due.

Inventory shrinkage causes an increase to COGS & a decrease to merchandise inventory

As a result of inventory shrinkage:

Occurs when the customer decides to keep some undesirable products at a reduced price

A high tech co reported sales of $220,000, COGS $150,000, inv $60,000. Gross profit was:

The two systems of measuring inventory are:

Sellers refer to this discount as sales discounts

A merchandising business is a business that buys and sells products for profit.

Buys mostly bulk merchandise from a manufacturer for selling to retailers.

Which of the following is not an example of an operating expense?

Physical goods that a company has purchased or manufactured to sell to its customers

The revenue of the merchandisers who sell products

Buys merchandise from a wholesaler or manufacturer to sell to end consumers

Sometimes referred to as general expenses, are those related to running the business

A business that buys and sells products, referred to as merchandise or goods, to make a profit

The gross profit margin for 4 companies calculated as shown below Select the most desirable GPM

Goods were purchased on acct last month. What is the correct entry to record pymt made this mo

The difference between sales revenue and cost of goods sold

Under the periodic system, beginning inventory + net purch is called cost of goods avail 4sale

Gross profit margin is calculated by dividing gross profit by sales revenue