Question 1

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

Accepted Answer

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

Question 2

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 3

Non-operating activities that include interest expense, losses from asset disposals, and casualty losses are reported as__________  .

Accepted Answer

The answer of Non-operating activities that include interest expense, losses...

Question 4

Non-operating activities that include interest, dividend, and rent revenues, and gains from asset disposals are called ________.

Accepted Answer

The answer of Non-operating activities that include interest, dividend, and...

Question 5

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 is referred to as__________

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

Question 6

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 7

________ 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 8

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

Accepted Answer

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

Question 9

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 10

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 11

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 12

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

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

Question 13

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 14

Under the ________ inventory accounting 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 ________ inventory accounting system, each...

Question 15

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 16

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

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

Question 17

Match between columns
                        Premises:  An inventory accounting method that continually updates accounting records for inventory available for sale and inventory sold.
 An inventorv accounting method that updates the accounting records for merchandise transactions only at the end of a period.
 The time period in which reduced payment can be made by the buyer because of a cash discount offered by a seller of goods on credit.
 A notification that informs the seller of a debit made to the seller's account payable in the buyer's records.
 A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.
 A notification that informs a buyer of a seller's credit to a buyer's account.
 A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.
 The calculation of net sales less cost of goods sold.
 The description of the amounts and timing of payments from a buyer to a seller for a purchase.
 The amount of time allowed before full payment is due.

Accepted Answer

The Answer of Debit memorandum and Credit period and Credit is...

Question 18

Match between columns
                        Premises:  A measure of a company's ability to pay its current liabilities that excludes less liquid current assets such as inventory and prepaid expenses.
 A widely used income statement format that lists cost of goods sold as another expense and shows only one subtotal for total expenses.
 The point of transfer from seller to buyer that takes place when the goods arrive at the buyer's place of business.
 Products a company owns and intends to sell.
 The expenses that support a company's overall operations and include costs related to accounting, human resource management and financial management.
 The point of transfer from seller to buyer that takes place when goods depart the seller's place of business.
 Inventory losses that can occur as a result of theft or deterioration and require an adjusting entry to account for those losses.
 An income statement format that shows detailed computations of net sales and other costs and expenses, and reports subtotals for various classe of items.
 A given percent deducted from a list price often granted to customers purchasing large quantities of merchandise.
 The expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers.

Accepted Answer

The Answer of Trade discount and General and administrative expenses is...

Quiz 5: Accounting for Merchandising Operations