ACC 231 EXAM #2 QUESTIONS WITH CORRECT ANSWERS|100% verified

ACC 231 EXAM #2 QUESTIONS WITH CORRECT ANSWERS Merchandise inventory CORRECT ANSWER Goods purchased for resale to customers. Periodic Inventory System CORRECT ANSWER Businesses does not keep a continuous record of inventory on hand. A physical count will be taken at the end of the period to determine the cost of the ending balance and the cost of goods sold. What is the formula to calculate the available goods for sale? CORRECT ANSWER BEGINNING BALANCE + PURCHASES What is the formula to calculate the cost of goods sold? CORRECT ANSWER BEGINNING BALANCE + PURCHASES - ENDING BALANCE Perpetual inventory system CORRECT ANSWER Keeps a continuous record of inventory on hand and cost of goods sold. Subsidiary ledger CORRECT ANSWER An accounting record that contains details such as a list of customers who has A/R or A/P. Sale invoice CORRECT ANSWER A bill that documents the sale of goods to customers. What are the business transactions with customers? CORRECT ANSWER Cash sales, credit sales, sale return/allowances, and discount sales. What is the formula to calculate net income? CORRECT ANSWER Sales revenue - cost of goods sold. Whenever a product is sold, what does the merchandiser recognize? CORRECT ANSWER 1. Sales revenue of the selling price of product sold to customer 2. Cost of goods sold of merchandisers cost of product