Accounting for Basic Merchandising Transactions Learning Objectives

DedicatedMinimalism avatar
DedicatedMinimalism
·
·
Download

Start Quiz

Study Flashcards

16 Questions

Merchandising is the process of buying and selling ______

merchandise

Merchandise refers to goods for sale in the ordinary course of business ______

operations

Merchandise purchases and sales are predominant transactions in a merchandising ______

business

Merchandising has been one of the most visible businesses in our ______

society

Account for merchandise returns, ______ and credit discounts

freight-in

Prepare the basic financial statements of a merchandising ______

business

The merchandising business buys goods from merchandise suppliers, sells them “as is” to customers, and collects its ______.

receivables

In contrast to servicing business, the unique transaction in merchandising is the buying and selling of the ______.

merchandise

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 ______.

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 ______.

customer

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 ______.

ordered

Receiving Report Buyer Validates the details of the merchandise ______.

received

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.

trade

Official Receipt Seller A document confirming seller's receipt of money from the ______.

buyer

Delivery Receipt Seller A formal communication to the buyer reminding him of his purchase and its related ______ terms.

credit

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.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

Get started for free

More Quizzes Like This

Accounting and Finance Quiz
18 questions
Accounting for Merchandising Inventory
18 questions
Accounting Chapter 10.2
10 questions
Use Quizgecko on...
Browser
Browser