Question 1

_____________________ refers to products that a company owns and intends to sell.

Accepted Answer

The answer of _____________________ refers to products that a company...

Question 2

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 3

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 4

A period's ___________________ becomes the next period's beginning inventory.

Accepted Answer

The answer of A period's ___________________ becomes the next period's...

Question 5

The acid-test ratio reflects the ___________ of a company.

Accepted Answer

The answer of The acid-test ratio reflects the ___________ of...

Question 6

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 7

Prepare journal entries to record the following merchandising transactions of Dean Company,which applies the perpetual inventory system.Dean Company offers all of its credit customers credit terms of 2/10,n/30.

Accepted Answer

The answer of Prepare journal entries to record the following...

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

From the adjusted trial balance given below for the Mirror Company,prepare a multiple-step income statement in good form.Salaries expense and depreciation expense on the building are equally divided between selling activities and the general and administrative activities.

Accepted Answer

The answer of From the adjusted trial balance given below...

Question 11

A merchandising company's ___________ begins with the purchase of merchandise and ends with the collection of cash from merchandise sales.

Accepted Answer

The answer of A merchandising company's ___________ begins with the...

Question 12

Beginning inventory plus the net cost of purchases is the _____________________.

Accepted Answer

The answer of Beginning inventory plus the net cost of...

Question 13

The amounts and timing of payment from a buyer to a seller are the _______________.

Accepted Answer

The answer of The amounts and timing of payment from...

Question 14

A ___________ inventory system updates the accounting record for inventory only at the end of a period.

Accepted Answer

The answer of A ___________ inventory system updates the accounting...

Question 15

A ___________ is an intermediary that buys products from manufacturers and sells to retailers.

Accepted Answer

The answer of A ___________ is an intermediary that buys...

Question 16

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.

Accepted Answer

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

Question 17

___________________ 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 18

The __________________ inventory system continually updates accounting records for merchandise transactions for the amounts of inventory available for sale and inventory sold.

Accepted Answer

The answer of The __________________ inventory system continually updates accounting...

Question 19

_____________ are non-operating activities that include interest expense,losses from asset disposals,and casualty losses.

Accepted Answer

The answer of _____________ are non-operating activities that include interest...

Question 20

___________ 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...

Quiz 5: Accounting for Merchandising Operations