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Accounting for Merchandising#1 Flashcards | StudBud
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Accounting for Merchandising#1
Accounting for Merchandising#1
15 terms
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StudBud Administration
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First Quiz for Merchandising Business
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
Credit terms of 1/15, n/60 means
1%discount if paid within 15 days, full amount due 60 days
10% discount if paid within 15 days,full amount due in60days
15%discount if paid in 10 days, full amount due 60days
None of these
2
This is the cost of merchandise purchased from a supplier/vendor that is sold to customers
Cost of Goods Sold
None of these
Purchases
Gross Profit
3
When seller transfers ownership of goods to buyer upon arrival at buyer's place of business.
Purchase memorandum
FOB destination
FOB shipping point
None of these
4
The Income Stmt of a service company (e.g.landscaping)is the same for a merchandising company
True
False
5
The entry to record merchandise purchased on account is
Purchases Dr, Accounts payable CR
None of these
Accounts Receivable, DR, Merchandise Inventory CR
Merchandise Inventory Dr, Accounts Payable,CR
6
Purchase discounts and purchase returns and allowances reduce merchandise inventory.
False
True
7
Evaluating profitability involves considering m current ratio.
True
False
8
Operating cycle of a Merchandising Company consists of
Purchase of Merchandise
Sale of Merchandise
All of these choices
Collection of Receivables
9
Solvency and Profitability are pretty much the same measurements.
True
False
10
This is the difference between net sales and cost of goods sold
None of these
Operating Income
Net Income
Gross profit
11
These 2 accounts are contra revenue accounts
Sales discounts, sales returns and allowances
Purchase discounts, sales returns and allowances
Purchase discounts, purchase returns and allowances
Sales discounts, Purchase returns and allowances
12
Goods that a company owns and expects to sell to its customers is called
Purchases
Merchandise Inventory
Beginning inventory
Cost of goods sold
13
If merchandise is returned and can be sold to another customer,only 1 journal entry isrequired
True
False
14
Closing Accounts in a Perpetual Inventory system are the same as a manufacturing system.
False
True
15
Adjusting for Inventory Shrinkage involves these two accounts ___________.
Revenue and Accounts Payable
Cost of Goods Sold and Accounts Receivable
Cash and Accounts Payable
Cost of Goods Sold and Inventory
