Question 1

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 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

_______________________ 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 4

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 5

______________________ 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 6

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 7

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 8

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 9

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 10

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

Accepted Answer

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

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

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

Accepted Answer

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

Question 13

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 14

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

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

___________ 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