ACCY 201 TEST 2 BURNEY EXAM SCRIPT
FINAL PAPER QUESTIONS ANSWERS
COMPREHENSIVE STUDY RESOURCE
●● merchandiser
Answer: earns net income by buying and selling merchandise.
●● wholesaler
Answer: an intermediary that buys products from manufacturers or other
wholesalers and sells them to retailers or other wholesalers.
●● retailer
Answer: an intermediary that buys products from manufacturers or
wholesalers and sells them to consumers.
●● cost of goods sold
Answer: the term used for the expense of buying and preparing the
merchandise.
●● gross profit/gross margin
Answer: equals net sales - cost of goods sold.
, ●● merchandise inventory
Answer: products that a company owns and intends to sell.
●● perpetual inventory system
Answer: continually updates accounting records for merchandising
transactions - specifically for those records of inventory available for
sale and inventory sold.
●● periodic inventory system
Answer: updates the accounting records for merchandise transactions
only at the end of a period.
●● credit period
Answer: the amount of time allowed before full payment is due.
●● FOB shipping point
Answer: the buyer accepts ownership when the goods depart the seller's
place of business. the buyer is then responsible for paying shipping costs
and bearing the risk of damage or loss when goods are in transit.
●● FOB destination
Answer: ownership of goods transfer 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.
FINAL PAPER QUESTIONS ANSWERS
COMPREHENSIVE STUDY RESOURCE
●● merchandiser
Answer: earns net income by buying and selling merchandise.
●● wholesaler
Answer: an intermediary that buys products from manufacturers or other
wholesalers and sells them to retailers or other wholesalers.
●● retailer
Answer: an intermediary that buys products from manufacturers or
wholesalers and sells them to consumers.
●● cost of goods sold
Answer: the term used for the expense of buying and preparing the
merchandise.
●● gross profit/gross margin
Answer: equals net sales - cost of goods sold.
, ●● merchandise inventory
Answer: products that a company owns and intends to sell.
●● perpetual inventory system
Answer: continually updates accounting records for merchandising
transactions - specifically for those records of inventory available for
sale and inventory sold.
●● periodic inventory system
Answer: updates the accounting records for merchandise transactions
only at the end of a period.
●● credit period
Answer: the amount of time allowed before full payment is due.
●● FOB shipping point
Answer: the buyer accepts ownership when the goods depart the seller's
place of business. the buyer is then responsible for paying shipping costs
and bearing the risk of damage or loss when goods are in transit.
●● FOB destination
Answer: ownership of goods transfer 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.
