4)Which of the following is/are the nature of a merchandising business?a.Buyingb.Sellingc.Noned.Buying and Selling

We know that manufacturing is a process in which an entity converts inputs to outputs. It is a…

Answered: merchandising business

Business

Accounting

merchandising business

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 1DQ

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Question

Which of the following is/are the nature of a merchandising business?

Buying

Selling

None

Buying and Selling

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Answer the following question1. Which accounts are used in a merchandising business but not in a service firm? Briefly define each.2. What are the two systems of maintaining inventory? Briefly define each.
(a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.
What is the revenue account for a merchandising business called? Group of answer choices gross profit fees earned net sales sales or sales revenue.
Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b. Merchandise Inventory c. Sales Revenue d. All of the above
For a manufacturer, what is the description of the account that is comparable to a merchandising businesss cost of merchandise sold?
For a manufacturer, what is the description of the account that is comparable to a merchandising businesss cost of merchandise sold?
Which of the following represents the components of the income statement for a merchandising business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Sales Revenue - Cost of Goods Manufactured = gross profit D. Service Revenue - Cost of Goods Purchased = gross profit
Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
Choose a company and describe how a specific issue, policy, or procedure (for example, granting merchandise returns, establishing sales prices) might look if the business is structured as a centralized business.
Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
Which of the following will be called as a Merchandising Business? a. Receives a loan from bank b. Earns net income by buying goods only c. Earns profits from commission only d. Earns net income by buying and selling merchandise