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Answer T or F The ending merchandise inventory for 2 0 0 5 is the as the beginning merchandise inventory or 2 0 0 6
Answer T or F The ending merchandise inventory for is the as the beginning merchandise inventory or In a multistep income statement the dollar amount for income from operations is always the same as net income. Net sales are equal to sales minus cost of merchandise sold. Gross profit minus selling expenses equals net income. The form on the balance sheet in which asserts, liabilities, and owners equity are presented in a downward sequence is called the report form. On the income statement in the singlestep form, the total of all expenses is deducted from the total of all revenues. The singlestep income statement is easier to prepare, but a criticism of this format is that gross profit and income from operations are nor readily available. Income that cannot be associated definitely with operations, such as gains from the sale of a fixed asset, is listed as Other Income on the multistep income statement.Under the perpetual inventory system, when a sale is made, both the retail and cost values are recorded. Under perpetual inventory system, the cost of merchandise sold is recorded when sales are made. If payment is due by the end of the month in which sale is made, the invoice terms are expressed as n When merchandise that was sold is returned, a credit to sales returns and allowances is made. In perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Sold is one to the accounts debited to record the transaction. Sales return is a contrarevenue account. Sales Discounts is a revenue account with a credit balance. Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as credit sales. Sales to customers who use nonbank credit cards, such as American Express, are generally treated as credit sales. Retailers record all credit card sales as charge sales. The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do not accept all credit cards. The document issued by the seller that informs the buyer of the details of sales returns is called a credit memorandum. A seller may grant a buyer a reduction in selling price and this is called a sales allowance. The effect of a sales return and allowance is a reduction in sales revenue and a decrease in cash or accounts receivable.Merchandise Inventory normally has a debit balance. A buyer who acquires merchandise under credit terms of n has days after the invoice date to take advantage of the cash discount. Discounts taken by the buyer for early payment of an invoice are called Cash Discounts by the buyer.
Answer T or F
The ending merchandise inventory for is the as the beginning merchandise inventory or
In a multistep income statement the dollar amount for income from operations is always the same as net income.
Net sales are equal to sales minus cost of merchandise sold.
Gross profit minus selling expenses equals net income.
The form on the balance sheet in which asserts, liabilities, and owners equity are presented in a downward sequence is called the report form.
On the income statement in the singlestep form, the total of all expenses is deducted from the total of all revenues.
The singlestep income statement is easier to prepare, but a criticism of this format is that gross profit and income from operations are nor readily available.
Income that cannot be associated definitely with operations, such as gains from the sale of a fixed asset, is listed as Other Income on the multistep income statement.Under the perpetual inventory system, when a sale is made, both the retail and cost values are recorded.
Under perpetual inventory system, the cost of merchandise sold is recorded when sales are made.
If payment is due by the end of the month in which sale is made, the invoice terms are expressed as n
When merchandise that was sold is returned, a credit to sales returns and allowances is made.
In perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Sold is one to the accounts debited to record the transaction.
Sales return is a contrarevenue account.
Sales Discounts is a revenue account with a credit balance.
Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as credit sales.
Sales to customers who use nonbank credit cards, such as American Express, are generally treated as credit sales.
Retailers record all credit card sales as charge sales.
The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do not accept all credit cards.
The document issued by the seller that informs the buyer of the details of sales returns is called a credit memorandum.
A seller may grant a buyer a reduction in selling price and this is called a sales allowance.
The effect of a sales return and allowance is a reduction in sales revenue and a decrease in cash or accounts receivable.Merchandise Inventory normally has a debit balance.
A buyer who acquires merchandise under credit terms of n has days after the invoice date to take advantage of the cash discount.
Discounts taken by the buyer for early payment of an invoice are called Cash Discounts by the buyer.
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Fundamentals of Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
7th edition
1259722635, 978-1259722639
