What is the main source of income for a buying and selling company? 2. Between the operational cycle of a service company and a buying and selling company, which is the longest? 3. What inventory systems do you know are used in a buying and selling business?

Q: rchases = Cost of goods available for sale – Ending inventory = Cost of goods sold   (A) How does…

A: Cost of goods sold is the cost incurred in producing or purchasing the goods sold in the current…

Q: Identify the type of business as service (S), retail merchandiser (RM), or wholesale…

A: A service is a transaction or activity in which no physical goods are transferred from the seller to…

Q: Explain the two methods of inventory tracking: inventory turnover ratio and number of days' sales in…

A:

Q: Which of the following statement is False for Perpetual inventory system of a Merchandise Business?…

A: The false statement about perpetual inventory system is "Value of closing inventory cannot be…

Q: If a company purchases inventory on account, what type of accounts are affected? (i.e., assets.…

A: Inventory :- It is raw materials , work in progress , finished goods, which is used to produce…

Q: Match the accounting terminology to the definitions. AClick the icon to view the definitions.) More…

A: Definition: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system…

Q: 1-Which of the following will be classified under inventory? a. Raw Materials b. All the above c.…

A: Gross profit margin = [(REVENUE - COGS) /REVENUE] *100

Q: a) How would issues and closing inventory be valued using LIFO b) Give journal entry assuming that…

A: a.

Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…

A: Answer: b. When inventory is delivered to a customer

Q: e entry to record the return of $250 of inventory to a supplier under the perpetual inventory system…

A: Solution: The entry to record the return of $250 of inventory to a supplier under the perpetual…

Q: How can we prepare financial statements for a company using periodic inventory system?

A: To calculate or account inventory there is two method, perpetual and periodic inventory method. In…

Q: For a restaurant, how does inventory on the balance sheet become an expense on the income statement,…

A: Solution:- Inventory on the balance sheet is a current asset, it becomes expense, when sold to the…

Q: What is a perpetual inventory system? What kind of businesses use perpetual inventory systems?

A: There are two types of inventory methods that are perpetual and periodic.

Q: The inventory accounts of a manufacturer are ________________, _____________________and…

A: The inventory accounts of a manufacturer are _______Raw material inventory_, Work in process…

Q: A company using a perpetual inventory system that returns goods previously purchased on credit would…

A: What is perpetual inventory system? It is a system which record the changes in inventory(purchased…

Q: Which one the following statements is true about periodic inventory system? Income statement and…

A: Periodic inventory system: Periodic inventory is a system of inventory in which updates are made on…

Q: Requirements a. At what amount was Cost of Goods Sold reported in the company's year-end income…

A: A perpetual inventory system is an inventory recording method in which the inventory transaction is…

Q: TRUE OR FALSE: Read each sentence carefully and determine whether the statement is True or False.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: a. Based on Table 1, compute the company's supply chain performance in terms of inventory turnover…

A: The answer is stated below:

Q: How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) ,…

A: The inventory turnover ratio expresses the relationship between the average cost of goods sold…

Q: When merchandise sold is assumed to be in the order in which the purchases were made, the company is…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first…

A: Fifo Method assumes that units purchased first should be used first to make sales hence item in…

Q: 1. Which accounts are used in a merchandising business but not in a service firm? Briefly define…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: inventory that it previously purchased. The entry to record that transaction should be: Group of…

A: The journal entries are prepared to record daily transactions of the business.

Q: 1 Which of the following statements about perpetual merchandising activities is true? (Identify the…

A: Hi student Since there are multiple question, we will answer only first question. If you want…

Q: Which of the following is used to analyze the efficiency and effectiveness of inventory management?…

A: Formulas:  Inventory turnover ratio = Cost of goods sold / Average inventory Days' sales in…

Q: . Which of the following figures from a firm’s financial statements should be used as itsflow rate…

A: In the above question we have asked about inventory turns which is as below.

Q: supplies expense, and advertising expense. It categorizes the remaining expenses as general and…

A: Income Statement - This statement shows the income earned and loss incurred by the organization in…

Q: What should be the journal entry to match the inventory record to the physical count of inventory?…

A: Inventory is the goods which the company has which are in order to sell them. In simple terms, these…

Q: What is a periodic inventory system? What kind of businesses use periodic inventory systems?

A: Inventory: The term refers to the goods being purchased with the intention of resale. For…

Q: You may recall from Principles I that “Cost of goods sold” for a retailer is figured as shown below:…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Q: 1. Which accounts are used in a merchandising business but not in a service firm? 2. What is the…

A: "Since you have asked multiple question we will solve the first question for you.  If you want any…

Q: In comparing the accounts of a merchandising company with those of a service company, what…

A: Perpetual inventory system:- It is the system in which sales and purchase of inventory is a…

Q: You are comparing two companies, Ying Ltd and Yang Corporation, in the same industry. Ying focuses…

A: Inventory: Inventory can be defined as the current assets of the company that includes the raw…

Q: Selling expenses are shown in which of the following statement? a. Cost of Goods Sold b. Profit and…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: 1) What distinguishes a retail business from a service business

A: Introduction:- Retail business is completely different from Service business. Retail business mean…

Q: Identify each of the following items relating to sections of an income statement as Revenue from…

A: Income Statement: The income statement reports the financial performance in terms of profit or loss…

Q: Indicate the best answer(s) for each question: Which of the following statements about perpetual…

A: Under perpetual inventory system, the inventory record is maintained with every sale and purchase.

Q: For each of the following, indicate whether the item would be reported on the balance sheet…

A: The financial statements of the business include balance sheet and income statement.

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.