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Accounting for Merchandising Operations Flashcards | StudBud
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Accounting for Merchandising Operations
Accounting for Merchandising Operations
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StudBud Administration
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Flashcards
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Questions
10
Answers
1
The I/S of a service company (e.g.landscaping)is the same for a merchandising company
True
False
2
This is the cost of merchandise purchased from a supplier/vendor that is sold to customers
None of these
Gross Profit
Purchases
Cost of Goods Sold
3
The entry to record merchandise purchased on account is
None of these
Accounts Receivable, DR, Merchandise Inventory CR
Purchases Dr, Accounts payable CR
Merchandise Inventory Dr, Accounts Payable,CR
4
This is the difference between net sales and cost of goods sold
None of these
Operating Income
Net Income
Gross profit
5
Goods that a company owns and expects to sell to its customers is called
Beginning inventory
Merchandise Inventory
Cost of goods sold
Purchases
6
Purchase discounts and purchase returns and allowances reduce merchandise inventory.
True
False
7
These 2 accounts are contra revenue accounts
Sales discounts, Purchase returns and allowances
Sales discounts, sales returns and allowances
Purchase discounts, sales returns and allowances
Purchase discounts, purchase returns and allowances
8
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
9
When seller transfers ownership of goods to buyer upon arrival at buyer's place of business.
FOB destination
None of these
FOB shipping point
Purchase memorandum
10
If merchandise is returned and can be sold to another customer,only 1 journal entry isrequired
False
True
