Can a business change from one inventory costing method to another any time they wish? Explain.

Q: What is the main difference between a perpetual inventory system and a periodic inventory system?…

A: Inventory can be valued under two methods. 1. perpetual inventory method 2. Periodic inventory…

Q: stinguish between a Merchandisers Income Statement and a Manufacturing Companies In

A: An income statement is a component  financial statement that shows you the company's income and…

Q: What is the main source of income for a buying and selling company? 2. Between the operational cycle…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Question 3 What is the difference between the way product and period costs are accounted for? O…

A:

Q: Which type of company would report merchandise inventory as a line item on their balance sheet?…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: If a company purchases inventory on account, what type of accounts are affected? (i.e., assets.…

A: Inventory :- It is raw materials , work in progress , finished goods, which is used to produce…

Q: "Do the steps in the accounting cycle for a merchandising company differs from the steps in the…

A: Accounting cycle is a process to identify, analyse and record the monetary transactions of a firm.…

Q: Cheryl believes that companies report cost of goods sold and ending inventory based on actual units…

A: Cost of goods sold: Cost of goods sold is the accumulate total of all direct cost incurred in…

Q: What inventory systems do you know are used in a buying and selling business?

A: The inventory systems popularly used are the  1) Perpetual inventory system  2) Periodic inventory…

Q: Explain in detail different types of documentation that the business would expect to change hands in…

A: a) Different types of documentation that the business would expect to change hands in the purchase,…

Q: How is the accounting cycle different for a merchandising operation, as compared to a service…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What do we mean by inventories? a. Inventories are goods purchased for resale in the normal course…

A: Following is the answer to the given question

Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…

A: Answer: b. When inventory is delivered to a customer

Q: Every company or organisation placed inventory as an important aspect for their  businesses. Discuss…

A: Inventory can be defined as assets held for sale in the ordinary course of business or in the…

Q: What is a perpetual inventory system? What kind of businesses use perpetual inventory systems?

A: There are two types of inventory methods that are perpetual and periodic.

Q: What is meant by purchase return and sales return in accounting?

A: Purchase return:A purchase return is a transaction that occurs when the buyer of the goods (for…

Q: Required: Do you think that the role of Accounting is very important in a Merchandise business? If…

A: The business that are engaged in the sale of products are known are merchandise business. The main…

Q: Which accounting concept requires that any goods taken from inventory by the owner are treated as…

A: The business entity concept states that the company must separate transactions of the business from…

Q: Which one the following statements is true about periodic inventory system? Income statement and…

A: Periodic inventory system: Periodic inventory is a system of inventory in which updates are made on…

Q: Is there a significant difference between adjusting and closing for a service firm and a merchandise…

A: Merchandise Company is a company that purchases finely finished goods and commodities and later…

Q: What are expenses like sales salaries expense, advertising expense, etc. called that are incurred…

A: Under the functional expense classification expenses are aggregated and reported by activities for…

Q: 1. Which accounts are used in a merchandising business but not in a service firm? Briefly define…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Explain the difference between the income statements of a merchandiser & a manufacturer

A: 1. Income Statement - An income statement is a statement that shows the revenue earned and expenses…

Q: In the income statement of a merchandising business, why do you think we have to categorize expenses…

A: Income Statement Income Statement shows company's revenues and expenses during a particular period

Q: What is a periodic inventory system? What kind of businesses use periodic inventory systems?

A: Inventory: The term refers to the goods being purchased with the intention of resale. For…

Q: You are comparing two companies, Ying Ltd and Yang Corporation, in the same industry. Ying focuses…

A: Inventory: Inventory can be defined as the current assets of the company that includes the raw…

Q: Assuming that Merchandise business use simple step income statement. Which of the following will be…

A: THE EQUATION USED IN A SIMPLE STEP INCOME STATEMENT : TOTAL REVENUE = (REVENUE + GAINS) TOTAL…

Q: i) Explain the main causes of inventory decreasing and increasing. (ii) What is the accounting…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: 1) What distinguishes a retail business from a service business

A: Introduction:- Retail business is completely different from Service business. Retail business mean…

Q: Indicate the best answer(s) for each question: Which of the following statements about perpetual…

A: Under perpetual inventory system, the inventory record is maintained with every sale and purchase.

Q: andise Inventory becomes part of Cost of Goods Sold when an entity sells the inventory pays the…

A: Solution: Merchandise Inventory becomes part of Cost of Goods Sold when an entity "sells the…

Q: Discuss what forms of relevant information are applicable for business decisions related to Make or…

A: Decision making model: A general approach to tactical decision making includes : Define the…