Podcast
Questions and Answers
Merchandising is the process of buying and selling ______
Merchandising is the process of buying and selling ______
merchandise
Merchandise refers to goods for sale in the ordinary course of business ______
Merchandise refers to goods for sale in the ordinary course of business ______
operations
Merchandise purchases and sales are predominant transactions in a merchandising ______
Merchandise purchases and sales are predominant transactions in a merchandising ______
business
Merchandising has been one of the most visible businesses in our ______
Merchandising has been one of the most visible businesses in our ______
Signup and view all the answers
Account for merchandise returns, ______ and credit discounts
Account for merchandise returns, ______ and credit discounts
Signup and view all the answers
Prepare the basic financial statements of a merchandising ______
Prepare the basic financial statements of a merchandising ______
Signup and view all the answers
The merchandising business buys goods from merchandise suppliers, sells them “as is” to customers, and collects its ______.
The merchandising business buys goods from merchandise suppliers, sells them “as is” to customers, and collects its ______.
Signup and view all the answers
In contrast to servicing business, the unique transaction in merchandising is the buying and selling of the ______.
In contrast to servicing business, the unique transaction in merchandising is the buying and selling of the ______.
Signup and view all the answers
A merchandising business deals with its suppliers at the back (ie, back end) and to its customers at the front (ie, front end). There are three (3) important persons in the merchandising transactions. They are the producer, merchandiser, and ______.
A merchandising business deals with its suppliers at the back (ie, back end) and to its customers at the front (ie, front end). There are three (3) important persons in the merchandising transactions. They are the producer, merchandiser, and ______.
Signup and view all the answers
A producer is the manufacturer of the goods bought by the ______.
A producer is the manufacturer of the goods bought by the ______.
Signup and view all the answers
A consumer utilizes serves as the broker or spends the utility between the of the goods supplier and the ______.
A consumer utilizes serves as the broker or spends the utility between the of the goods supplier and the ______.
Signup and view all the answers
The following are the usual business documents used in merchandising transactions: BUSINESS DOCUMENTS ISSUED BY MEMO Purchase Order Buyer Details the quantity, specifications, significant dates, buyer, and other important matters with regard to the merchandise being ______.
The following are the usual business documents used in merchandising transactions: BUSINESS DOCUMENTS ISSUED BY MEMO Purchase Order Buyer Details the quantity, specifications, significant dates, buyer, and other important matters with regard to the merchandise being ______.
Signup and view all the answers
Receiving Report Buyer Validates the details of the merchandise ______.
Receiving Report Buyer Validates the details of the merchandise ______.
Signup and view all the answers
Sales Invoice Seller This is a more formal document confirming the transaction entered into by the seller and the buyer with the needed transaction details such as the ______ terms.
Sales Invoice Seller This is a more formal document confirming the transaction entered into by the seller and the buyer with the needed transaction details such as the ______ terms.
Signup and view all the answers
Official Receipt Seller A document confirming seller's receipt of money from the ______.
Official Receipt Seller A document confirming seller's receipt of money from the ______.
Signup and view all the answers
Delivery Receipt Seller A formal communication to the buyer reminding him of his purchase and its related ______ terms.
Delivery Receipt Seller A formal communication to the buyer reminding him of his purchase and its related ______ terms.
Signup and view all the answers
Study Notes
Merchandising Definition and Overview
- Merchandising is the process of buying and selling goods.
- Merchandise refers to goods for sale in the ordinary course of business.
- Merchandising has been one of the most visible businesses in our economy.
Key Transactions in Merchandising
- Merchandise purchases and sales are predominant transactions in a merchandising business.
- The merchandising business buys goods from merchandise suppliers, sells them “as is” to customers, and collects its payment.
- The unique transaction in merchandising is the buying and selling of the goods.
Roles in Merchandising Transactions
- There are three important persons in the merchandising transactions: producer, merchandiser, and consumer.
- A producer is the manufacturer of the goods bought by the merchandiser.
- A consumer utilizes serves as the broker or spends the utility between the of the goods supplier and the buyer.
Business Documents Used in Merchandising
- The following are the usual business documents used in merchandising transactions:
- Purchase Order: details the quantity, specifications, significant dates, buyer, and other important matters with regard to the merchandise being purchased.
- Receiving Report: validates the details of the merchandise received.
- Sales Invoice: a more formal document confirming the transaction entered into by the seller and the buyer with the needed transaction details such as the payment terms.
- Official Receipt: a document confirming seller's receipt of money from the buyer.
- Delivery Receipt: a formal communication to the buyer reminding him of his purchase and its related payment terms.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of basic merchandising transactions with this quiz covering the relationships of producer, merchandiser, and consumer, business documents used, journal entries, pricing, and trade discounts. This quiz is based on the learning objectives outlined in the chapter 'Accounting for Basic Merchandising Transactions' by Ronalyn Joy E. Mercado, CPA, LPT.
