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Merchandising Business

Total questions: 20

Worksheet time: 6mins

Name
Class
Date
1.

It generates income from buying and selling of merchandise.

a)

Merchantdising business

b)

Merchandising Bussiness

c)

Merchandising Business

d)

Buy and Sell Business

2.

A method of inventory keeping where it is characterized by the use of stock card.

a)

Periodic Inventory

b)

Perpetual Inventory

c)

Calendar Inventory

d)

Merchandise Inventory

3.

Which of the following does not belong to the group?

a)

cash discounts

b)

sales discounts

c)

purchase discounts

d)

trade discounts

4.

Which of the following does not belong to the group?

a)

Merchandise Inventory, end

b)

Merchandise Inventory, Beg

c)

Freight-In

d)

Purchase Return and Allowances

5.

The following belongs to a one group, except

a)

Sales

b)

Purchases

c)

Sales Discount

d)

Freight-Out

6.

Which of the following is not considered an account title under periodic inventory system?

a)

cost of sales

b)

purchases

c)

freight-out

d)

sales discount

7.

When output VAT is lesser than the input VAT there is

a)

VAT Payable

b)

VAT Liability

c)

VAT Credits

d)

Prepaid Tax

8.

Ending Inventory is (a)   from cost of goods available for sale.

9.

Which of the following items can lead to a difference between values of profit and gross profit?

a)

sales return

b)

purchase return

c)

transportation-in

d)

transportation-out

10.

Under the periodic inventory system, cost of goods sold is treated as an account.

a)

TRUE

b)

FALSE

c)

IT DEPENDS

d)

NONE OF THE ABOVE

11.

JB began the period with P200,000 in inventory. The entity purchased an additional P200,000 of inventory and returned P20,000 for a full credit. A physical count of the inventory at year-end revealed an inventory on hand of P160,000. What was the cost of goods sold for the period?

a)

160,000

b)

220,000

c)

480,000

d)

500,000

12.

The excess of net sales over the cost of goods sold is called

a)

gross profit

b)

merchandising income

c)

operating profit

d)

marginal income

13.

TRUE OR FASLE: A physical inventory is usually taken at the end of the accounting period.

(a)  

14.

Debit: Transportation In

Credit: Accounts Payable

What is the debit when perpetual inventory system is used?

a)

Cash

b)

Accounts Receivable

c)

Freight-In

d)

Inventory

15.

Debit: Cost of Sales

Credit: Merchandise Inventory

Which of the following is not true?

a)

Stock card amount is lower than physical count

b)

Inventory Breakage

c)

Inventory Shortage

d)

Stock card amount is greater than actual inventory

16.

Value- Added tax on sales return

a)

Input VAT

b)

Output VAT

c)

VAT Payable

d)

Prepaid VAT

17.

Which of the following is a characteristic of the perpetual inventory system?

a)

Inventory is updated continuously

b)

Inventory is updated at the end of the period

c)

Cost of goods sold is calculated at year-end

d)

Only physical counts are used

18.

What is the primary purpose of a stock card in inventory management?

a)

To track sales discounts

b)

To record inventory purchases and sales

c)

To calculate gross profit

d)

To manage accounts payable

19.

Which of the following accounts is typically not included in the calculation of cost of goods sold?

a)

Sales Discounts

b)

Sales Returns

c)

Freight-In

d)

Purchases

20.

Which of the following accounts is typically included in the calculation of net sales?

a)

Freight-Out

b)

Cost of Goods Sold

c)

Sales Returns

d)

Inventory