Access Card To Accompany Financial Accounting Niagara County Community College Acc 116 2-semester Access Phillips
5th Edition
ISBN: 9781259663420
Author: PHILLIPS
Publisher: MCG CUSTOM
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Textbook Question
Chapter 6, Problem 6.1ME
Distinguishing among Operating Cycles
Identify the type of business as service (S), retail merchandiser (RM), or wholesale merchandiser (WM) for each of the following.
_____ 1. The company reports no inventory on its
_____ 2. The company is a true “middleman,” buying from a manufacturer and selling to other
companies.
_____ 3. The company sells goods to consumers.
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Identify the type of business as service (S), retail merchandiser (RM), or wholesale merchandiser(WM) for each of the following.1. The company reports no inventory on its balance sheet.2. The company is a true “middleman,” buying from a manufacturer and selling to othercompanies.3. The company sells goods to consumers.
Which of the following statement is False for Multi-step income statement of a merchandise business?
a.
It helps in analyzing how well the company is performing
b.
It divides the expenses into Selling, General and administration expenses
c.
Users can see how much expense is incurred in selling the product and how much is in administering business
d.
It divides operating expense into Direct and Indirect expenses.
1) What distinguishes a retail business from a service business?
2) what is the perpetual and periodic inventory systems?
3) What adjusting entries are posted for a retailer that differ from those of service business?
4)) Describe the multiple-step income statement for a retailer?
Chapter 6 Solutions
Access Card To Accompany Financial Accounting Niagara County Community College Acc 116 2-semester Access Phillips
Ch. 6 - Prob. 1QCh. 6 - If a Chicago-based company ships goods on...Ch. 6 - Define goods available for sale. How does it...Ch. 6 - Define beginning inventory and ending inventory.Ch. 6 - Describe how transportation costs to obtain...Ch. 6 - What is the main distinction between perpetual and...Ch. 6 - Why is a physical count of inventory necessary in...Ch. 6 - What is the difference between FOB shipping point...Ch. 6 - Describe in words the journal entries that are...Ch. 6 - What is the distinction between Sales Returns and...
Ch. 6 - Prob. 11QCh. 6 - In response to the weak economy, your companys...Ch. 6 - Prob. 13QCh. 6 - Why are contra-revenue accounts used rather than...Ch. 6 - What is gross profit? How is the gross profit...Ch. 6 - Prob. 1MCCh. 6 - Prob. 2MCCh. 6 - Prob. 3MCCh. 6 - Prob. 4MCCh. 6 - Prob. 5MCCh. 6 - Prob. 6MCCh. 6 - Prob. 7MCCh. 6 - Prob. 8MCCh. 6 - Prob. 9MCCh. 6 - Prob. 10MCCh. 6 - Distinguishing among Operating Cycles Identify the...Ch. 6 - Calculating Shrinkage in a Perpetual Inventory...Ch. 6 - Prob. 6.3MECh. 6 - Inferring Purchases Using the Cost of Goods Sold...Ch. 6 - Evaluating Inventory Cost Components Assume...Ch. 6 - Prob. 6.6MECh. 6 - Recording Journal Entries for Purchases and Safes...Ch. 6 - Prob. 6.8MECh. 6 - Recording Journal Entries for Sales and Sales...Ch. 6 - Prob. 6.10MECh. 6 - Prob. 6.11MECh. 6 - Calculating Shrinkage and Gross Profit in a...Ch. 6 - Preparing a Multistep Income Statement Sellall...Ch. 6 - Prob. 6.14MECh. 6 - Computing and Interpreting the Gross Profit...Ch. 6 - Interpreting Changes in Gross Profit Percentage...Ch. 6 - Prob. 6.17MECh. 6 - Understanding Relationships among Gross Profit and...Ch. 6 - Relating Financial Statement Reporting to Type of...Ch. 6 - Prob. 6.2ECh. 6 - Identifying Shrinkage and Other Missing inventory...Ch. 6 - Prob. 6.4ECh. 6 - Prob. 6.5ECh. 6 - Inferring Missing Amounts Based on Income...Ch. 6 - Prob. 6.7ECh. 6 - Prob. 6.8ECh. 6 - Reporting Purchases, Purchase Discounts, and...Ch. 6 - Prob. 6.10ECh. 6 - Items Included in Inventory PC Mall, Inc., is a...Ch. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Reporting Net Sales with Credit Sales and Sales...Ch. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Determining the Effects of Credit Sales, Sales...Ch. 6 - Prob. 6.19ECh. 6 - Inferring Missing Amounts Based on Income...Ch. 6 - Prob. 6.21ECh. 6 - Prob. 6.22ECh. 6 - (Supplement 6A) Recording Purchases and Sales...Ch. 6 - Prob. 6.1CPCh. 6 - Prob. 6.2CPCh. 6 - Prob. 6.3CPCh. 6 - Prob. 6.4CPCh. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Prob. 6.1PACh. 6 - Reporting Purchase Transactions between Wholesale...Ch. 6 - Recording Sales with Discounts and Returns and...Ch. 6 - Prob. 6.4PACh. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Prob. 6.1PBCh. 6 - Reporting Purchase Transactions between Wholesale...Ch. 6 - Prob. 6.3PBCh. 6 - Prob. 6.4PBCh. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Accounting for Inventory Orders, Purchases, Sales,...Ch. 6 - Prob. 6.1SDCCh. 6 - Prob. 6.2SDCCh. 6 - Internet-Based Team Research: Examining an Annual...Ch. 6 - Evaluating the Results of Merchandising Operations...Ch. 6 - Prob. 6.6SDCCh. 6 - Prob. 6.1CC
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A company regularly purchases materials from a manufacturer on credit. Payments for these purchases occur within the companys operating cycle. They do not include interest and are established with an invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation does this best describe? A. sales tax payable B. accounts payable C. unearned revenue D. income taxes payablearrow_forward1. Which accounts are used in a merchandising business but not in a service firm?2. What is the primary revenue account in a merchandising business? Can a merchandising business have a Service Income account?3. What are the two systems of maintaining inventory? Briefly define each.4. If you are going to put up a business, what type of business would you wan toestablish? Why?arrow_forwardCompanies that sell products and goods will have inventory and cost of goods sold accounts. The basic cost of goods sold equation is: Beginning Inventory + Purchases – Ending Inventory = Cost of Goods Sold The ending inventory of one period is the beginning inventory of the next period. Businesses that offer services do not normally sell products as their primary business activity but may sell them to supplement their services. What additional accounts would you expect to find in a manufacturing firm and how do they relate to the cost of goods sold?arrow_forward
- The revenue account for a merchandising business is typically called ___________. Group of answer choices inventory sales. unearned revenue. fees earned. sales or sales of merchandise.arrow_forwardThe "dual nature of merchandise transactions" as described in this chapter means every business transaction affects both a/an __________ and a/an ____________. Group of answer choices income statement; balance sheet debit entry and a credit entry buyer; seller asset; expensearrow_forwardNoon LLC has business in Adham. The sales manager is not confident about receiving the money and suggests you not the record in the accounts sales of goods until the money is finally received. You are required to explain him that the business should record all the information which are important to show the results of the business. This concept is known as a. Historical Cost Concept. b. Dual Aspect Concept c. Entity Concept d. Realization Conceptarrow_forward
- Assuming that Merchandise business use multiple step income statement. Which of the following will be correct result of Income from operation by the business? a. Gross Margin will be divided by Total Operating expenses b. Total operating expenses will be deducted from Gross Margin c. Gross Margin will be multiplied by Total Operating expenses d. Operating expenses will be deducted from net salesarrow_forwardWhich 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 abovearrow_forwardTrue or False 1. As an inventory is sold in many retail businesses, the largest expense is created 2. When merchandise that was sold is returned, a credit to sales returns and allowances is madearrow_forward
- Assuming that Merchandise business use multiple step income statement. Which of the following will be correct result of Income from operation by the business? a. Gross Margin will be multiplied by Total Operating expenses b. Operating expenses will be deducted from net sales c. Gross Margin will be divided by Total Operating expenses d. Total operating expenses will be deducted from Gross Margin Clear my choicearrow_forwardWhen the goods are sent on consignment, the goods are recorded in the books of a. Business have possession of the goods as closing stock b. Nobody till the goods are sold c. Business who have sent the goods, as closing stock d. Business as a sale of goodsarrow_forward2. Which of the following equations is false? a. Net Income = Gross Profit – Operating Expenses b. COGS = Cost of Goods Available for Sale – Ending Inventory c. Sales Revenue – COGS – Operating Expenses = Net Income d. Net Income = Operating Expenses + Gross Profit 3. Pinkan Company sells merchandise to Castle Corporation with terms FOB Shipping Point. In this case, the freight cost will be paid by … a. Pinkan Company b. Castle Corporation c. Shipping Company d. Pinkan Company and Castle Corporationarrow_forward
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