ACCOUNTING 200 EXAM 2 (KU) 2025
QUESTIONS AND ANSWERS
Marketing - ANS determines the wants and demands of the customers and then decides how
to fulfill them
Mark-up - ANS when a product is bought by a merchandiser and sold at a higher price
(Merchandise Inventory) Inventory - ANS products stored for resale
Purchases Account - ANS companion account to inventory
Concur Account - ANS has the same normal balance as its companion
Purchase Returns - ANS items that are returned to the supplier because they are not right for
some reason
Purchase Allowances - ANS price reductions granted by the supplier after the fact to make
amends for some error on its part
Purchase Returns and Allowances - ANS contra account to the purchases account since it
represents a reduction in purchases
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, Purchase Discounts - ANS when a merchandiser purchases goods on a regular basis from the
same supplier and they get a discount
Wholesaler - ANS company that sells to other companies like merchandisers
Net Purchases - ANS gross purchases made throughout the period, plus freight in, less
purchase discounts and purchase returns and allowances
(Goods Available for Sale) GAS - ANS total amount of inventory that could be sold in a period
Sales - ANS revenue account used to store the information regarding the ultimate revenue
created by the sale of goods
(Cost of Goods Sold) COGS - ANS expense associated with the depletion of inventory during a
period
Gross Margin - ANS sales revenue less cost of goods sold
Gross Margin Percentage - ANS Gross Margin/Nets Sales Revenue x 100
Internal Controls - ANS actions and policies that a company uses to safeguard assets ,
maintain correct accounting records, encourage efficiency, and promote adherence to company
policies
Human Resource Management - ANS field within business that focuses on the individuals
who work for a business entity
Deposits in Transit - ANS deposits of cash and checks that the company records at the time
of receipt before forwarding to the bank
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
QUESTIONS AND ANSWERS
Marketing - ANS determines the wants and demands of the customers and then decides how
to fulfill them
Mark-up - ANS when a product is bought by a merchandiser and sold at a higher price
(Merchandise Inventory) Inventory - ANS products stored for resale
Purchases Account - ANS companion account to inventory
Concur Account - ANS has the same normal balance as its companion
Purchase Returns - ANS items that are returned to the supplier because they are not right for
some reason
Purchase Allowances - ANS price reductions granted by the supplier after the fact to make
amends for some error on its part
Purchase Returns and Allowances - ANS contra account to the purchases account since it
represents a reduction in purchases
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 1
, Purchase Discounts - ANS when a merchandiser purchases goods on a regular basis from the
same supplier and they get a discount
Wholesaler - ANS company that sells to other companies like merchandisers
Net Purchases - ANS gross purchases made throughout the period, plus freight in, less
purchase discounts and purchase returns and allowances
(Goods Available for Sale) GAS - ANS total amount of inventory that could be sold in a period
Sales - ANS revenue account used to store the information regarding the ultimate revenue
created by the sale of goods
(Cost of Goods Sold) COGS - ANS expense associated with the depletion of inventory during a
period
Gross Margin - ANS sales revenue less cost of goods sold
Gross Margin Percentage - ANS Gross Margin/Nets Sales Revenue x 100
Internal Controls - ANS actions and policies that a company uses to safeguard assets ,
maintain correct accounting records, encourage efficiency, and promote adherence to company
policies
Human Resource Management - ANS field within business that focuses on the individuals
who work for a business entity
Deposits in Transit - ANS deposits of cash and checks that the company records at the time
of receipt before forwarding to the bank
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
