Accy 201 - Test 2 - Ole Miss – Burney
Questions Fully Solved.
merchandise - Answer consists of products, also called goods, that a company acquires to
resell to customers.
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.
Questions Fully Solved.
merchandise - Answer consists of products, also called goods, that a company acquires to
resell to customers.
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.
