BUSN 212-CH6

A service business provides a service like dry cleaner

• false

• true

merchandising business sells goods like grocery.

• false

• true

Operating cycle in Merchandising Businesses

is shorter than Operating cycle in service business

• false

• true

Select the operating cycle

• reductions from the list price and are not recorded in the accounts

• Sales of merchandise inventory for cash or on credit

• Collection of cash from credit sales

• Purchase of merchandise inventory for cash or credit

• Payment for purchases made on credit

how many inventory system do we have ?

• zero

• four

• two

• six

___________ Inventory records are updated with every purchase and every sale. 

• Sales discounts

• Periodic inventory system

• Perpetual inventory system

• Trade discounts

___________ Inventory records are updated only at the end of the period when a physical count is taken

• Sales discounts

• Periodic inventory system

• Perpetual inventory system

• Trade discounts

___________ are reductions from the list price and are not recorded in the accounts.

• Sales discounts

• Periodic inventory system

• Perpetual inventory system

• Trade discounts

___________ are offered by the seller for prompt payment.

• Sales discounts

• Periodic inventory system

• Perpetual inventory system

• Trade discounts

__________ deduct directly from a person’s bank account

• none

• both

• Credit

• Debit