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Exam 6: Accounting for Merchandising Businesses

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Question 41

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Under the periodic inventory system, the journal entry to record the purchase of merchandise inventory will include a debit to

A) Merchandise Inventory
B) Purchases
C) Accounts Payable
D) Cost of Merchandise Purchased

E) C) and D)
F) A) and B)

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Question 42

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Based upon the following data, determine the cost of merchandise sold for August.

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Cost of me...

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Question 43

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In a multiple-step income statement the dollar amount for income from operations is always the same as net income.

When merchandise is returned under the perpetual inventory system, the buyer would credit

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

When the perpetual inventory system is used, the inventory sold is debited to

Generally, the revenue account for a merchandising business is entitled

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

For each of the following, calculate the cost of inventory reported on the balance sheet.

Calculate income from operations for Jonas Company based on the data given below:

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

In credit terms of 3/15, n/45, the "3" represents the

Selected accounts and amounts appear below. Journalize the closing entry, assuming a perpetual inventory system.

A business using the perpetual inventory system, with its detailed subsidiary records, does need to take a physical inventory.

Selected data from the ledger of Morrison Co. after adjustment at September 30, 2011 the end of the fiscal year, are listed as follows: Prepare an income statement, using the single-step form, and a statement of owner's equity.

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

Which of the following accounts has a normal credit balance?

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

In a perpetual inventory system, the Merchandise Inventory account is only used to reflect the beginning inventory.

If the ownership of merchandise passes to the buyer when the seller delivers the merchandise for shipment, the terms are stated as FOB destination.