Question 1

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

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The answer of Under the ______________ inventory accounting system, each...

Question 2

____________________ can benefit a seller by decreasing the delay in receiving cash and reducing future collection efforts.

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The answer of ____________________ can benefit a seller by decreasing...

Question 3

Non-operating activities reported on the income statement that include interest expense, losses from asset disposals, and casualty losses are called ____________________________.

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The answer of Non-operating activities reported on the income statement...

Question 4

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

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The answer of ________________________ expenses are those costs that support...

Question 5

The gross margin ratio equals net sales less ___________ divided by net sales.

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The answer of The gross margin ratio equals net sales...

Question 6

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.

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

Question 7

Merchandise that customers return to the seller after a sale is referred to as ___________________.

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The answer of Merchandise that customers return to the seller...

Question 8

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

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The answer of A buyer issues a _______________________ to inform...

Question 9

The current asset account debited when recording a seller's cost-side adjusting entry for the estimated amount of current and future sales returns and allowances is ___________________________.

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The answer of The current asset account debited when recording...

Question 10

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

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

Question 11

Besides the current ratio, the liquidity of a company can be measured using the ____________________, which only includes the most liquid current assets in its calculation.

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The answer of Besides the current ratio, the liquidity of...

Question 12

A seller usually prepares a ____________________ to confirm a buyer's return or allowance, and informs the buyer of the seller's credit to the buyer's Account Receivable on the seller's books.

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

Question 13

Inventory shrinkage can be computed by comparing the ___________ of inventory with recorded quantities and amounts.

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The answer of Inventory shrinkage can be computed by comparing...

Question 14

Non-operating activities reported on the income statement that include interest, dividend, and rent revenues, and gains from asset disposals are called _____________________________.

Accepted Answer

The answer of Non-operating activities reported on the income statement...

Question 15

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

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The answer of When a company has no reportable non-operating...

Question 16

_________________ are the amounts and timing of payment from a buyer to a seller stated on the invoice.

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The answer of _________________ are the amounts and timing of...

Question 17

Reductions in the selling price of defective or unacceptable merchandise that a customer is willing to keep are referred to as _____________________________.

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The answer of Reductions in the selling price of defective...

Question 18

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 19

The current liability account credited when recording a seller's revenue-side adjusting entry for the estimated amount of current and future sales returns and allowances is ______________________.

Accepted Answer

The answer of The current liability account credited when recording...

Question 20

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

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

Quiz 4: Reporting and Analyzing Merchandising Operations