FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Accounting for Merchandising Businesses

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

When goods are shipped FOB destination and the seller pays the freight charges, the buyer

A) journalizes a reduction for the cost of the merchandise.
B) journalizes a reimbursement to the seller.
C) does not take a discount.
D) makes no journal entry for the freight.

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

Freight in is the amount paid by the company to deliver merchandise sold to a customer.

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

The abbreviation FOB stands for Free On Board.

Using the letter preceding each account, arrange the following selected accounts in the order they would normally appear in a chart of accounts of a company that uses a multiple-step income statement.

Using the following information, what is the amount of merchandise available for sale?

When comparing a retail business to a service business, the financial statement that changes the most is the

The inventory system employing accounting records that continuously disclose the amount of inventory is called

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Under the periodic inventory system, the cost of merchandise sold is recorded when sales are made.

Which account will be included in both service and merchandising companies closing entries?

In the merchandising income statement, sales will be reduced by sales discounts and sales returns and allowances to arrive at net sales.

Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.

Which of the following costs would be included in merchandise inventory?

Which of the following items should not be included in the cost of ending merchandise inventory?

Under the perpetual inventory system, all purchases of merchandise are debited to the account entitled

The form of the balance sheet in which assets, liabilities, and owner's equity are presented in a downward sequence is called the report form.

Gross profit is equal to:

Expenses that are incurred directly or entirely in connection with the sale of merchandise are classified as

Other income and expenses are items that are related to the primary operating activity.

In a merchandise business, sales minus operating expenses equals net income.