WorksheetsMerchandising
Total questions: 10
Worksheet time: 8mins
What is the layman's term for merchandising?
business
buying
selling
buy and sell
To grant a customer a sales return, the seller credits Sales Returns and Allowances.
True
False
An enterprise which sells goods to customers is known as a
proprietorship
corporation
retailer
service firm
The collection of a ₱ 750 account within the 5 percent discount period will result in a
debit to Sales Discounts for ₱ 37.50
debit to Accounts Receivable for ₱ 712.50
credit to Cash for ₱ 712.50
credit to Accounts Receivable for ₱ 712.50
In a perpetual inventory system, as inventory is purchased, it is initially recorded as (1) _____________. When inventory is sold to customers, it is converted to (2) ___________.
(1) an asset (2) an expense
(1) an expense (2) revenue
(1) an expense (2) cost of goods sold
(1) an asset (2) revenue
What account is used to summarize reduction from selling prices of merchandise sold to customers on account due to early cash settlement of the account?
Sales Return
Sales Discount
Freight out
Sales
What are the accounts involved in this transaction?
BZ Water Refilling Station received payment for the account of Mr. Ef Ven. BZ WRSgranted Mr. Ven a discount of PHP. 12, 350.
1. Cash
2. Purchase Discounts
3. Sales Discounts
4. Accounts Receivable
5. Accounts Payable
1, 3 and 5
1 and 3
3 and 4
3 and 5
Which is not a merchandising accounts in buying?
Purchases
Freight-in
Drayage in
Freight-out
Why is Purchase Allowances a credit account?
Because purchase allowances are additional assets.
Because purchase allowances are added to the value of total merchandise.
Because purchase allowances are deductions from the total value of the total purchases.
Because purchase allowances are merchandise bought are assets until sold.
Which of the following best describes the Perpetual Inventory System?
1. It is used by merchandising firms selling a limited number of products of relatively high value, e.g. appliances, equipment, jewelry, and the likes.
2. It is normally used by a merchandising firm selling innumerable products, e.g., stocks in trade of trading stores, groceries, small department stores and etc.
3. It is a method of inventory management that records real-time transactions of received or sold stock through the use of technology – generally considered a more efficient method.
4. It is time-consuming and can produce stale numbers that are less useful to management.
1 and 2
1 and 3
2 and 3
3 and 4
