Merchandise (MC NOCTI)

The goods that a business purchases for resale are called?

• Supplies

• merchandise

• equipment

• expenses

Goods on hand available for resale are called?

• purchases

• inventory

• assets

• liability

What type of account is Merchandise Inventory?

• asset

• liability

• revenue

• expense

Merchandise inventory in the Balance Sheet section of worksheet represents

• Beginning merchandise inventory

• Ending merchandise inventory

• Cost of goods sold

• Merchandise purchased during the period

An inventory method that shows a change in the amounts on hand as the changes occur is called a ___________ inventory

• Physical

• Perpetual

• Merchandise control

• sales

The purchase of merchandise on account

• Decrease an asset

• Decrease a liability

• Increase a liability

• Increase an expense

A creditor is a person or business

• Who owes us money

• To whom we owe money

• Selling merchandise for credit only

• Purchasing equipment for cash only

Given a periodic inventory system, the account showing the cost of merchandise purchased for resale is entitled

• Purchases

• Sales

• Purchases Returns and Allowances

• Sales Returns and Allowances

The total in the Accounts Payable schedule equals the

• Accounts paid off during the fiscal period

• Cash paid to creditors during a fiscal period

• Purchase mad during a fiscal period

• Controlling account balance in the general ledger

A cash discount is based on

• Invoice terms

• Vendor relationships

• Purchase volume

• A trade reduction