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What is the main purpose of accounting?
To systematically record, report, and analyze financial transactions
What are merchandise transactions in trade enterprises?
Buying and selling of goods to generate revenue
How is internal trade defined?
Trade activities carried out within one country
How does accounting help with cost control in businesses?
By monitoring expenses to improve profitability
What does COGS stand for in accounting?
Cost of Goods Sold
What characterizes wholesale trade?
Selling large quantities of goods for commercial use or production
Which characteristic of accounting ensures financial statements are clear and understandable?
Transparency
Which method can be used to value inventory?
FIFO, LIFO, or Weighted Average Method
What is the activity code for wholesale trade according to state statistical bodies?
71100
What is one challenge faced by trade and catering businesses in accounting?
High variability in costs
What should be specified in clear contractual agreements with suppliers?
Payment terms, delivery schedules, and product quality expectations
What account is used for goods in retail trade according to BHMS No. 21?
2920
How does regulatory compliance benefit trade and catering businesses?
By avoiding penalties and maintaining good standing
What is Gross Profit Margin?
(Gross Profit / Sales Revenue) × 100
What is the purpose of account 2980?
To record trade markups