ACC 231 Exam #2 Questions and Answers Already
Graded A+
Merchandise inventory Goods purchased for resale to customers.
Businesses does not keep a continuous record of
inventory on hand. A physical count will be taken at
Periodic Inventory System
the end of the period to determine the cost of the
ending balance and the cost of goods sold.
Formula to calculate BEGINNING BALANCE + PURCHASES
available goods for sale
Formula to calculate cost BEGINNING BALANCE + PURCHASES - ENDING
of goods sold BALANCE
Perpetual inventory Keeps a continuous record of inventory on hand and
system cost of goods sold.
An accounting record that contains details such as a
Subsidiary ledger
list of customers who has A/R or A/P.
Sale invoice A bill that documents the sale of goods to customers.
Business transactions with Cash sales, credit sales, sale return/allowances, and
customers discount sales.
Formula to calculate net Sales revenue - cost of goods sold.
income
1. Sales revenue of the selling price of product sold to
Merchandiser recognizes
customer 2. Cost of goods sold of merchandisers cost
upon sale
of product
, It's a contra-account to sales revenue. It has a normal
Sales return
balance of debit.
A document that supports the return of goods from
Credit memorandum customers or allowances of unsatisfactory goods or
the adjustment of customer's account balance.
It has a normal balance of debit and will be closed
Sales discount
with expense.
1. When receiving goods from suppliers 2. When
Merchandiser costs
delivering goods to customers 3. Advertising and
payment
other selling costs.
A legally recognized possession or ownership of
Title
property.
Aka FOB; the title transfers to the buyer once the
Free on board shipping
goods are shipped at the seller's place of business
point
thus, the buyer pays for the shipping.
Title transfers to buyer when the goods are received
Free on board destination
at the buyer's destination. Seller pays for shipping.
Expense related to advertising or selling of products
Selling expense such as sale salary, sale commissions, depreciation on
items used for sales, and delivery expense.
Formula to calculate net SALE REVENUE - SALE RETURN - SALE DISCOUNT.
sale revenue
Formula to calculate gross NET SALE REVENUE - COST OF GOODS SOLD.
profit
Depreciation, rent, utilities, advertising, delivery
Operating expense
expense, property taxes, and supplies expense.
Office expense such as the salary of employees,
General administrative
depreciation on items used in administrative such as
expense
rent, utilities, and property taxes of office building.
GROSS PROFIT - OPERATING EXPENSE. Aka income
Operating income
from operations.
Graded A+
Merchandise inventory Goods purchased for resale to customers.
Businesses does not keep a continuous record of
inventory on hand. A physical count will be taken at
Periodic Inventory System
the end of the period to determine the cost of the
ending balance and the cost of goods sold.
Formula to calculate BEGINNING BALANCE + PURCHASES
available goods for sale
Formula to calculate cost BEGINNING BALANCE + PURCHASES - ENDING
of goods sold BALANCE
Perpetual inventory Keeps a continuous record of inventory on hand and
system cost of goods sold.
An accounting record that contains details such as a
Subsidiary ledger
list of customers who has A/R or A/P.
Sale invoice A bill that documents the sale of goods to customers.
Business transactions with Cash sales, credit sales, sale return/allowances, and
customers discount sales.
Formula to calculate net Sales revenue - cost of goods sold.
income
1. Sales revenue of the selling price of product sold to
Merchandiser recognizes
customer 2. Cost of goods sold of merchandisers cost
upon sale
of product
, It's a contra-account to sales revenue. It has a normal
Sales return
balance of debit.
A document that supports the return of goods from
Credit memorandum customers or allowances of unsatisfactory goods or
the adjustment of customer's account balance.
It has a normal balance of debit and will be closed
Sales discount
with expense.
1. When receiving goods from suppliers 2. When
Merchandiser costs
delivering goods to customers 3. Advertising and
payment
other selling costs.
A legally recognized possession or ownership of
Title
property.
Aka FOB; the title transfers to the buyer once the
Free on board shipping
goods are shipped at the seller's place of business
point
thus, the buyer pays for the shipping.
Title transfers to buyer when the goods are received
Free on board destination
at the buyer's destination. Seller pays for shipping.
Expense related to advertising or selling of products
Selling expense such as sale salary, sale commissions, depreciation on
items used for sales, and delivery expense.
Formula to calculate net SALE REVENUE - SALE RETURN - SALE DISCOUNT.
sale revenue
Formula to calculate gross NET SALE REVENUE - COST OF GOODS SOLD.
profit
Depreciation, rent, utilities, advertising, delivery
Operating expense
expense, property taxes, and supplies expense.
Office expense such as the salary of employees,
General administrative
depreciation on items used in administrative such as
expense
rent, utilities, and property taxes of office building.
GROSS PROFIT - OPERATING EXPENSE. Aka income
Operating income
from operations.
