Which statement below correctly explains what merchandise inventory is?

Which statement below correctly explains what merchandise inventory is?

Which statement below correctly explains what merchandise inventory is? Merchandise inventory is an asset reported on the balance sheet and contains the cost of products purchased for sale.

Which of the following costs are included in merchandise inventory?

Merchandise inventory is finished goods that are held for sale to customers. Costs that are included in “merchandise inventory” include the cost of the product, transportation-in costs, packaging costs, transit insurance, etc.

What four accounts are affected by a sale of merchandise on account?

• accounts receivable, sales returns and allowances.
• accounts receivable, cash.
• sales returns and allowances, merchandise inventory.
• accounts receivable, cost of goods sold.

What are the four closing journal entries for a merchandiser?

A merchandiser has four closing journal entries at the end of an accounting cycle. Select the correct entries below. (Check all that apply.)…

• Sales.
• Cost of Goods Sold.
• Gross Profit.
• Operating Expenses.
• Income from Operations.
• Other Revenues and Expenses.

Which statement S Below is are correct regarding the purpose of taking a physical inventory count?

Which statements are correct regarding the purpose of taking a physical inventory count? – The physical count is used to determine if there has been any theft, loss, damage or errors in inventory. – The physical count is used to adjust the Inventory account balance to the actual inventory available.

Which inventory system requires that the inventory account be updated when merchandise is purchased?

Under a periodic inventory system, Purchases will be updated, while Merchandise Inventory will remain unchanged until the company counts and verifies its inventory balance. This count and verification typically occur at the end of the annual accounting period, which is often on December 31 of the year.

What is a merchandise inventory?

Merchandise inventory refers to the value of goods in stock, whether it’s finished goods or raw materials that are ready to sell, that are intended to be resold to customers. Think of it as a holding account for inventory that is expected to be sold soon.

What does merchandising inventory include?

The term merchandise inventory includes the value of goods, including raw materials or finished goods, that are ready to be sold to customers.

What is merchandise cost?

The cost of merchandise sold is the cost of goods that have been sold by a wholesaler or retailer. These entities do not manufacture their own goods, instead buying the goods from third parties and selling them to their customers.

What is merchandise in accounting?

Merchandise is an inventory asset that a retailer, distributor or wholesaler purchases from a supplier to sell for profit.

What is merchandise in accounting equation?

In terms of the accounting equation, merchandise inventory is a current asset as shown below. The numbers in parentheses refer to the chapters in which the accounts are discussed. Resources. = Sources of Resources.

What are merchandising activities?

Merchandising means selling products to retail customers. Merchandisers, also called retailers, buy products from wholesalers and. manufacturers, add a markup or gross profit amount, and sell the products to consumers at a higher price than what they paid.

What is meant by merchandiser?

noun. a person or company that buys and sells goods; a merchant or retailer: Each year our “vendor village” is full of merchandisers who add to the tournament’s festival-like atmosphere.

Do you close merchandise inventory?

An inventory account must be closed at the end of a company’s accounting period. Closing the inventory account allows the company to carry its ending inventory balance forward to the next accounting period.

Which of the following is shown on the income statement of both merchandising and service companies?

Which of the following is shown on the income statement of both merchandising and service companies? Only operating expenses are shown on the income statement of both merchandising and service companies.

Which of the following statements correctly explains what the inventory turnover ratio assesses multiple choice question?

Which of the following statements correctly explains what the inventory turnover ratio assesses. The inventory turnover ratio assesses how quickly a company is selling its merchandise, so that it can generate cash to pay debts.

Which of the following is an inventory processing system?

28 Cards in this Set

What are the two reasons that inventory must be estimated?

What are the two reasons that inventory must be estimated? The work of one person acts as a check on another person to prevent fraud and errors. Responsibility for a task should be clearly established and assigned to one person. Use of detailed records to help prevent loss of assets.