Question 1

Under the ___________ system, each purchase, purchase return and allowance, purchase discount, and transportation-in transaction is recorded in a separate temporary account.

Accepted Answer

The answer of Under the ___________ system, each purchase, purchase...

Question 2

______________________ are nonoperating activities that include interest expense, losses from asset disposals, and casualty losses.

Accepted Answer

The answer of ______________________ are nonoperating activities that include interest...

Question 3

___________________ refer to reductions in the selling price of merchandise sold to customers, often involving damaged or defective merchandise that a customer is willing to purchase with a decrease in the selling price.

Accepted Answer

The answer of ___________________ refer to reductions in the selling...

Question 4

A ______________________ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Accepted Answer

The answer of A ______________________ income statement includes cost of...

Question 5

When a company has no reportable nonoperating activities, its income from operations is reported as ___________________.

Accepted Answer

The answer of When a company has no reportable nonoperating...

Question 6

____________________ refer to merchandise that customers return to the seller after a sale.

Accepted Answer

The answer of ____________________ refer to merchandise that customers return...

Question 7

_______________________ are nonoperating activities that include interest, dividend and rent revenues, and gains from asset disposals.

Accepted Answer

The answer of _______________________ are nonoperating activities that include interest,...

Question 8

A _______________________ is a document the buyer issues to inform the seller of a debit made to the seller's account in the buyer's records.

Accepted Answer

The answer of A _______________________ is a document the buyer...

Question 9

A company purchased $8,750 worth of merchandise, with terms of 2/10, n/30. The invoice was paid within the cash discount period. Accordingly, the company received a cash discount of _______________.

Accepted Answer

The answer of A company purchased $8,750 worth of merchandise,...

Question 10

FOB _________________ means ownership of goods transfers to the buyer when the goods arrive at the buyer's place of business. The seller is responsible for paying shipping charges and bears the risk of damage or loss in transit.

Accepted Answer

The answer of FOB _________________ means ownership of goods transfers...

Question 11

___________ expenses are those expenses that support a company's overall operations and include expenses related to accounting, human resource management, and financial management.

Accepted Answer

The answer of ___________ expenses are those expenses that support...

Question 12

Sales discounts can benefit a seller by decreasing the delay in receiving cash and ___________.

Accepted Answer

The answer of Sales discounts can benefit a seller by...

Question 13

A seller usually prepares a ____________________ to confirm a buyer's return or allowance that informs the buyer of the seller's credit to the buyer's account receivable on the seller's books.

Accepted Answer

The answer of A seller usually prepares a ____________________ to...

Question 14

A _____________________ income statement format shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.

Accepted Answer

The answer of A _____________________ income statement format shows detailed...

Question 15

FOB _________________ means the buyer accepts ownership when the goods depart the seller's place of business. The buyer is responsible for paying shipping costs and bears the risk of damage or loss when goods are in transit.

Accepted Answer

The answer of FOB _________________ means the buyer accepts ownership...

Question 16

The agreement regarding the amounts and timing of payment from a buyer to a seller are the ____________________.

Accepted Answer

The answer of The agreement regarding the amounts and timing...

Question 17

Match between columns
                        Premises: Inventory losses that can occur as a result of theft or deterioration.
The abbreviation for free on board; refers to the point when ownership of goods passes to the buyer.
An income statement format that shows only one subtotal for total expenses.
Products a company owns and intends to sell.
Expenses that support overall operations and includes expenses related to accounting, human resource management and financial management.
The abbreviation for end-of-month; used to describe credit terms for some transactions.
The expenses of promoting sales by displaying and advertising merchandise, making sales and delivering goods to customers.
The catalog price of an item before any trade discount is deducted.
A ratio used to assess a company's ability to pay its current liabilities; defined as quick assets divided by current liabilities.
An income statement format that shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.

Accepted Answer

The Answer of Inventory shrinkage and EOM and List price is...

Question 18

Match between columns
                        Premises: The description of the amounts and timing of payments from a buyer to a seller.
A cash discount granted to customers for paying within the discount period.
The time period in which a cash discount is available and a reduced payment can be made by the buyer.
A notification that the sender has debited the recipient's account kept by the sender.
The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.
An accounting method that continually updates accounting records for merchandise transactions.
A notification that the sender has credited the recipient's account kept by the sender.
The amount of time allowed before full payment is due.
An accounting method that updates the accounting records for merchandise transactions only at the end of a period.
Net sales less cost of goods sold.

Accepted Answer

The Answer of Sales discount and Credit memorandum and Periodic is...

Question 19

Match between columns
                        Premises:  The description of the amounts and timing of payments from a buyer to a seller.
 Net sales less cost of goods sold.
 The amount of time allowed before full payment is due.
 An accounting method that continually updates accounting records for merchandise transactions.
 A notification that the sender has debited the recipient's account kept by the sender.
 A cash discount granted to customers for paying within the discount period.
 The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.
 An accounting method that updates the accounting records for merchandise transactions only at the end of a period.
 The time period in which a cash discount is available and a reduced payment can be made by the buyer.
 A notification that the sender has credited the recipient's account kept by the sender.

Accepted Answer

The Answer of Perpetual inventory system and Periodic inventory system is...

Question 20

Match between columns
                        Premises:  The abbreviation for free on board; refers to the point when ownership of goods passes to the buyer.
 A ratio used to assess a company's ability to pay its current liabilities; defined as quick assets divided by current liabilities.
 Inventory losses that can occur as a result of theft or deterioration.
 The catalog price of an item before any trade discount is deducted.
 An income statement format that shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.
 An income statement format that shows only one subtotal for total expenses.
 The abbreviation for end-of-month; used to describe credit terms for some transactions.
 Products a company owns and intends to sell.
 The expenses of promoting sales by displaying and advertising merchandise, making sales and delivering goods to customers.
 Expenses that support overall operations and includes expenses related to accounting, human resource management and financial management.

Accepted Answer

The Answer of Acid-test ratio and Single-step income statement and is...

Quiz 4: Accounting for Merchandising Operations