MERCHANDISING BUSINESS

What do you call the result of operation when the total expenses is greater than the revenue?

• Net Profit

• Net Loss

• Net Book Value

• Net purchases

The discount offered by the seller to induce the latter to buy volumes of merchandise is called______.

• trade discount

• sales discount

• purchase discount

• cash discount

The result after adding the net purchases to the merchandise inventory beginning is _________.

• Merchandise inventory, end

• Net book value

• Total goods available for Sale

• Cost of Sales

A letter issued by the seller granting the request of the buyer for a reduction from the price of the merchandise sold is ___.

• debit memorandum

• credit memorandum

• requisition letter

• promissory note

It shows the financial condition of the business at a given period of time is called _____.

• Statement of Comprehensive Income

• Statement of Financial Position

• Cash Flow Statement

• Statement of Changes in Equity