Accy 201 - Test 2 - Ole Miss – Burney || WITH ALL
PASSED ANSWERS!
merchandise correct answers consists of products, also called goods, that a company acquires
to resell to customers.
merchandiser correct answers earns net income by buying and selling merchandise.
wholesaler correct answers an intermediary that buys products from manufacturers or other
wholesalers and sells them to retailers or other wholesalers.
retailer correct answers an intermediary that buys products from manufacturers or
wholesalers and sells them to consumers.
cost of goods sold correct answers the term used for the expense of buying and preparing the
merchandise.
gross profit/gross margin correct answers equals net sales - cost of goods sold.
merchandise inventory correct answers products that a company owns and intends to sell.
perpetual inventory system correct answers continually updates accounting records for
merchandising transactions - specifically for those records of inventory available for sale and
inventory sold.
periodic inventory system correct answers updates the accounting records for merchandise
transactions only at the end of a period.
credit period correct answers the amount of time allowed before full payment is due.
FOB shipping point correct answers 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 correct answers 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.
shrinkage correct answers the term used to refer to the loss of inventory, and it is computed
by comparing a physical count of inventory with recorded amounts.
goods on consignment correct answers goods that are shipped by the owner.
consignor correct answers the owner of goods that are being shipped
consignee correct answers someone who sells goods for the owner.
first-in, first-out (FIFO) correct answers a method of assigning costs to both inventory and
cost of goods sold that assumes that inventory items are sold in the order acquired.
PASSED ANSWERS!
merchandise correct answers consists of products, also called goods, that a company acquires
to resell to customers.
merchandiser correct answers earns net income by buying and selling merchandise.
wholesaler correct answers an intermediary that buys products from manufacturers or other
wholesalers and sells them to retailers or other wholesalers.
retailer correct answers an intermediary that buys products from manufacturers or
wholesalers and sells them to consumers.
cost of goods sold correct answers the term used for the expense of buying and preparing the
merchandise.
gross profit/gross margin correct answers equals net sales - cost of goods sold.
merchandise inventory correct answers products that a company owns and intends to sell.
perpetual inventory system correct answers continually updates accounting records for
merchandising transactions - specifically for those records of inventory available for sale and
inventory sold.
periodic inventory system correct answers updates the accounting records for merchandise
transactions only at the end of a period.
credit period correct answers the amount of time allowed before full payment is due.
FOB shipping point correct answers 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 correct answers 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.
shrinkage correct answers the term used to refer to the loss of inventory, and it is computed
by comparing a physical count of inventory with recorded amounts.
goods on consignment correct answers goods that are shipped by the owner.
consignor correct answers the owner of goods that are being shipped
consignee correct answers someone who sells goods for the owner.
first-in, first-out (FIFO) correct answers a method of assigning costs to both inventory and
cost of goods sold that assumes that inventory items are sold in the order acquired.
