Quiz 5 Flashcards
A merchandiser earns profit by buying and selling merchandise
true
a service company earns profit by buying and selling merchandise
false
A wholesaler is a company that buys products from manufactures and sells them to consumers
false
a retailer is a middleman that buys products from manufacturers and sells them to wholesaler
false
gross profit is also called gross
true
Y-mart had sales of $350,000 its cost of goods sold was $200,00 its gross profit is $550,000
false
Y-mart has a net sales of $645,000 its cost of goods was $445,000 its gross margin was $200,000
true
Cost of goods sold is reported on both the income statement and the balance sheet
false
a perpetual inventory system gives a continuous record of the amount of inventory on hand
true
The terms 2/10, n/30 means that the seller offers the purchaser a 2% cash discount if the amount is paid in full within 10 days Otherwise the full amount is due in 30 days
true
for each sales transaction of a seller using a perpetual inventory system it recognizes revenue and cost of goods sold
true
A debit to sales Returns and Allowances and a credit to Accounts receivable means that a customer may have returned the merchandise
true
Sales of $350,000 and net sales of $323,000 may reflect sales discounts od $27,000
true
Transportation-in increases cost of goods purchased
true
Merchandising sales and costs reported on the income statement usually differ from cash receipts and payments for the period
true