ACCY 201 - TEST 2 - OLE MISS – BURNEY
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.
shrinkage - Answer -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 - Answer -goods that are shipped by the owner.
consignor - Answer -the owner of goods that are being shipped
consignee - Answer -someone who sells goods for the owner.
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.
shrinkage - Answer -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 - Answer -goods that are shipped by the owner.
consignor - Answer -the owner of goods that are being shipped
consignee - Answer -someone who sells goods for the owner.
