Merchandising Matters
Merchandising inventory is found on which financial statement and under which category?
What is the Balance Sheet and what is a current asset?
The term used for the expense of buying and preparing the merchandise is...
What is the cost of goods sold?
True or False: When a petty cash fund is in use, petty cash is credited when funds are replenished.
What is false?
True or False: The person who keeps the records of an asset should also be the person responsible for its custody?
What is false?
The credit terms 2/10, n/30 are interpreted as..
What is 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days?
Sales Discounts and Sales Returns and Allowances would be closed at the end of the accounting period with a debit or a credit?
What is a credit?
Cost of goods available for sale must be allocated at the end of the period between which of the following two categories: ending inventory, beginning inventory, cost of goods sold, or the net purchases during the period?
What are ending inventory and cost of goods sold?
What are checks written and recorded by the depositor but not yet paid by the bank at the bank statement date?
What are outstanding checks?
What is the internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded?
What is a voucher?
What are short-term investment assets that are readily convertible to a known cash amount or sufficiently close to their maturity date?
What are cash equivalents?
One measure of a merchandiser's ability to pay its current liabilities (referred to as its liquidity) is the...
What is the acid-test ratio?
The _____ ______ inventory costing system tends to smooth out erratic changes in costs.
What is the weighted average?
What is one of the four main items of information provided on a bank statement?
What is beginning-of-period balance of the depositors account? What are checks and other debits decreasing the account during the period? What are deposits and other credits increasing the account during the period? What is the end-of-period balance of the depositor's account?
True or False: Promoting efficient operations is one of the policies and procedures that make up an internal control system?
What is true?
When an inventory error yields an offsetting error in the next period, it is said to be...
What is self-correcting?
What is the formula to calculate gross profit?
What is net sales minus cost of goods sold?
What is the invoice cost minus any discount, plus any incidental costs necessary?
What is the formula for the days' sales uncollected?
What is accounts receivable divided by net sales multiplied by 365?
Provide the components of the fraud triangle.
What is opportunity, rationalization, and financial pressure?
What is beginning inventory plus net purchases? What is ending inventory plus cost of goods sold?
What is the formula for net sales?
What is sales less discounts less sales returns and allowances?
What is the inventory turnover ratio?
What is the cost of goods sold divided by average merchandise inventory?
An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n)
What is a bank reconciliation?
Internal control procedures are important in every business, but at what stage in the development of a business do they become especially critical?
What is when the manager of a business can no longer control the business through personal supervision and direct participation?
Provide the journal entry for the following transaction: Company A established a petty cash fund of $150 on July 1.