Which statement below correctly explains what merchandise Inventory is?
Which statement below correctly explains what merchandise Inventory is?
Merchandise inventory is subtracted from net sales on the income statement to determine gross profit for the period.
Merchandise inventory is increased when products are sold to customers.
Merchandise inventory is an expense account reported on the income statement and contains the cost of products purchased for sale
Merchandise inventory is an asset reported on the balance sheet and contains the cost of products purchased for sale
Homework Answers
Solution:
Merchandising inventory is an asset reported on Balance sheet and contains the cost of products purchased for sale.
Because merchandising inventory is balance of inventory which is unsold and therefore it is shown as asset on Balance sheet as it will be sold in future periods.
Hence last option is correct.
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Which statement below correctly explains what merchandise Inventory is?
getproctorio.com/secured lockdown bols Chapters 1, 2, & 3) Saved %6 Identify the impact of each of...
getproctorio.com/secured lockdown bols Chapters 1, 2, & 3) Saved %6 Identify the impact of each of the given transactions on the accounting equation: Se Onts Transactions a. The owner invests cash in the business in exchange for its common stock. b. The company purchases supplies on credit c. The company provides services for cash d. The owner invests land in the business (in exchange for its stock). .. The company purchases equipment on credit 1. The company purchases equipment for...
Cost of goods sold is characterized by which of the following statements? (Check all that apply.)...
Cost of goods sold is characterized by which of the following statements? (Check all that apply.) Cost of goods sold is the money received from selling merchandise. Cost of goods sold is an expense reported on the income statement. Cost of goods sold includes the expenses of buying and preparing an item for sale. Cost of goods sold is used to figure gross profit. Cost of goods sold is also called cost of sales. Cost of goods sold is an asset reported on the balance sheet.Merchandise...
@ Test Bank for Accounting Principles, Eighth Edition The multiple-step form of income statement is easier...
@ Test Bank for Accounting Principles, Eighth Edition The multiple-step form of income statement is easier to read than the single-step form 22 Merchandise inventory is classified as a current asset in a classified balance sheet Gain on sale of equipment and interest expense are reported under other revenues and gains in a multiple-step income statement. 23. The gross profit section for a merchandising company appears on both the multiple-step and single-step forms of an income statement. In a multiple-step...
Merchandise inventory at the end of the year was understated. Which of the following statements correctly...
Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? Net income is understated Net income is overstated Cost of merchandise sold is understated Merchandise inventory reported on the balance sheet is overstated
1) On a merchandising balance sheet, merchandise inventory is listed as a(n) A) current liability. B)...
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11 A company buys footwear and clothing from manufacturers, which it resells to discount stores in...
11 A company buys footwear and clothing from manufacturers, which it resells to discount stores in a large urban area. This company is an example of a: A) wholesale merchandising company. B) service company. C) retail merchandising company. D) secondary service company. 12 Which line item would be found on a merchandiser's balance sheet and not on a service firm's? A) Supplies B) Cost of Goods Sold C) Inventory D) Sales Revenue 13 Inventory is reported as a(n) on the...
Cost of goods sold is characterized by which of the following statements? (Check all that apply.)...
Cost of goods sold is characterized by which of the following statements? (Check all that apply.) Cost of goods sold is an asset reported on the balance sheet. Cost of goods sold includes the expenses of buying and preparing an item for sale. Cost of goods sold is the money received from selling merchandise. Cost of goods sold is an expense reported on the income statement Cost of goods sold is used to figure gross profit. Cost of goods sold...
which of the following statements regarding merchandise inventory is not true? a) merchandise inventory appears on...
which of the following statements regarding merchandise inventory is not true? a) merchandise inventory appears on the balance sheet of a service company b) merchandise inventory is reported on the balance sheet as a current asset c) merchandise inventory refers to products a company owns and intends to sell d) merchandise inventory may include the costs of freight-in and making them ready for sale
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on...
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on the balance sheet as a current asset O an inventory account on the balance sheet as equity an inventory account on the income statement as revenue Question 4 4 pts Which of the following would appear on the balance sheet of a merchandiser but not on the balance sheet of a service company? O cost of goods sold O merchandise inventory gross profit o...
Athletic world began January with merchandise inventory of 70 crates of vitamins that cost a total...
Athletic world began January with merchandise inventory of 70
crates of vitamins that cost a total of $4,550. During the month,
Athletic World purchased and sold merchandise on account as follows.
onth, Athletic World purchased and sold merchandise on account as follows: pany's cost of goods sold, ending merchandise inventory, and gross profit method. Enter the transactions in chronological order, calculating new inventory on hand balances after purchased, sold, and on hand at the end of the period. (Enter the...
getproctorio.com/secured lockdown bols Chapters 1, 2, & 3) Saved %6 Identify the impact of each of the given transactions on the accounting equation: Se Onts Transactions a. The owner invests cash in the business in exchange for its common stock. b. The company purchases supplies on credit c. The company provides services for cash d. The owner invests land in the business (in exchange for its stock). .. The company purchases equipment on credit 1. The company purchases equipment for...
@ Test Bank for Accounting Principles, Eighth Edition The multiple-step form of income statement is easier to read than the single-step form 22 Merchandise inventory is classified as a current asset in a classified balance sheet Gain on sale of equipment and interest expense are reported under other revenues and gains in a multiple-step income statement. 23. The gross profit section for a merchandising company appears on both the multiple-step and single-step forms of an income statement. In a multiple-step...
Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? Net income is understated Net income is overstated Cost of merchandise sold is understated Merchandise inventory reported on the balance sheet is overstated
1) On a merchandising balance sheet, merchandise inventory is listed as a(n) A) current liability. B) expense. C) revenue. D) current asset. 2) A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with terms of 2/1o, n/30. Which of the following is the journal entry to record the payment made within 1 A) a debit to Accounts Payable for $63,700, a debit to Merchandise Inventory for $1,300 and a credit to Cash fors65,000 B) a...
11 A company buys footwear and clothing from manufacturers, which it resells to discount stores in a large urban area. This company is an example of a: A) wholesale merchandising company. B) service company. C) retail merchandising company. D) secondary service company. 12 Which line item would be found on a merchandiser's balance sheet and not on a service firm's? A) Supplies B) Cost of Goods Sold C) Inventory D) Sales Revenue 13 Inventory is reported as a(n) on the...
Cost of goods sold is characterized by which of the following statements? (Check all that apply.) Cost of goods sold is an asset reported on the balance sheet. Cost of goods sold includes the expenses of buying and preparing an item for sale. Cost of goods sold is the money received from selling merchandise. Cost of goods sold is an expense reported on the income statement Cost of goods sold is used to figure gross profit. Cost of goods sold...
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on the balance sheet as a current asset O an inventory account on the balance sheet as equity an inventory account on the income statement as revenue Question 4 4 pts Which of the following would appear on the balance sheet of a merchandiser but not on the balance sheet of a service company? O cost of goods sold O merchandise inventory gross profit o...
Athletic world began January with merchandise inventory of 70
crates of vitamins that cost a total of $4,550. During the month,
Athletic World purchased and sold merchandise on account as follows.
onth, Athletic World purchased and sold merchandise on account as follows: pany's cost of goods sold, ending merchandise inventory, and gross profit method. Enter the transactions in chronological order, calculating new inventory on hand balances after purchased, sold, and on hand at the end of the period. (Enter the...
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