what is merchandising business? and why accounting is important in merchandising
1. what is merchandising business? and why accounting is important in merchandising
Merchandise is the term used for any product that you can sell or buy. Any good for sale is merchandise, some examples include groceries in a supermarket, clothes in a retail store, electronics on a website or raw materials in a manufacturing warehouse.
Merchandise refers to any type of goods, including personal or commercial products, as well as commodities that are sold to members of the public (retail) or other businesses (wholesale)
Merchandising makes several important contributions to your store. It increases sales by making a store appealing to your customers. It improves profitability by generating more margin dollars. It controls costs by improving the productivity of the salesfloor as well as each employee.
One of the most important aspects of Retail Merchandising is to offer its customers the products that their customers expect to buy. To do this, we will have to work on the planning, supply, purchase and storage and display of products
2. Explain the Accounting Cycle of a Merchandising Business.
Answer:
The accounting cycle for a merchandising business organized as a corporation consists of the following steps: Collect and verify source documents. Analyze each business transaction. Journalize each transaction.
3. explain briefly what is 'The accounting cycle of service business and The accounting cycle of merchandising business'
Answer:
Completing the Accounting Cycle for a Merchandising Business
Prepare the financial statements–income statement, statement of retained earnings, balance sheet, and statement of cash flows. Journalize and post the adjusting entries. Journalize and post the closing entries. Prepare a post-closing trial balance.
Explanation:
.
Answer:
they can sell products and diliver if you are an account ting make sure the thenge is not plenty
Explanation:
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4. merchandise on hand at the end of an accounting period
Ending Inventory....
5. 1. Which accounts are used in a merchandising business but not in a service firm? Briefly define each.
Answer:
Merchandising companies will have an asset for inventory, whereas service companies do not. This is listed as a current asset. Other differences can include the types of accounts payable a merchandising company has
6. Business transactions of a merchandising business studocu
Answer:
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Explanation:
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7. Give specific account titles for accounting equation above and give examples of single/sole proprietorship businesses and merchandising businesses.
Give specific account titles for accounting equation above and give examples of single/sole proprietorship businesses and merchandising businesses.
Answer:
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8. 5 What account title to be used for revenue in a merchandising type of business? A Gains C Sales B Losses D Service Income
Answer:
SALES
Explanation:
sale of inventory- this is the primary income-generating activity of merchandising and manufacturing businesses.The most common account titles used are:SALES,SALES REVENUE,or REVENUE FROM SALES.
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9. Merchandise account is credited when merchandise bought was granted a certain amount of discount. True or False Merchandise account is credited when defective goods are returned to the supplier. true or falseCash purchase of supplies increases the assets. True or False We debit the proper asset account when we purchase assets other than merchandise. True or False For a trading business, purchase of stocks for sale is debited to purchase account. true or false
Answer:
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Step-by-step explanation:
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10. refers to goods and merchandise at the beginning of operation of business or accounting period
Answer:
Merchandise inventoryExplanation:
Merchandise inventory refers to the value of goods in stock, whether it's finished goods or raw materials that are ready to sell, that are intended to be resold to customers. Think of it as a holding account for inventory that is expected to be sold soon.Hope this helpsPa brainliest poHave a nice day11. Think of all the elements or accounts in the statement of Comprehensive Income(SCI) for service and merchandising business,list it down and explain each. Explain each.
Answer:
The statement of comprehensive income reports the net equity of a business enterprise over a given period. The financial statement includes two key parts: the income statement, which outlines the net income, and other comprehensive income, which incorporates the items excluded from the income statement
12. Sales is an account title used to describe goods or merchandise sold by a business. what nature of business uses sales?
Answer:
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Merchandising companies will have an asset for inventory, whereas service companies do not. This is listed as a current asset. Other differences can include the types of accounts payable a merchandising company has.
Explanation:Hope its helps pa brainliest plz
14. differentiate the different merchandising account tittle
Answer:
The account that records the cost of this merchandise is called Purchases. This account has a debit balance and is classified as a cost. Purchases represent costs that are directly related to bringing merchandise into the store for resale to customers.
Answer:
However, the Merchandising worksheet will include the following account titles and amount: accounts receivable, merchandise inventory, accounts payable, sales tax and purchases.
15. 8. Merchandise sent to notify its recipient that the business sending the memorandum has it in its records credited the account of the recipient
Answer:
b.
Explanation:
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16. example of merchandising business and its account title and elements
Merchandising companies include auto dealerships, clothing stores, and supermarkets, all of which earn revenue by selling goods to customers.
17. Why does Merchandise Inventory account appear in a Merchandising business Balance Sheet but not in a Service business? Explain your answer.
Answer:
Merchandise Inventory
Merchandise inventory is the cost of goods on hand and available for sale at any given time. Merchandise inventory (also called Inventory) is a current asset with a normal debit balance meaning a debit will increase and a credit will decrease.
To determine the cost of goods sold in any accounting period, management needs inventory information. Management must know:
its cost of goods on hand at the start of the period (beginning inventory)
the net cost of purchases during the period
and the cost of goods on hand at the close of the period (ending inventory).
Since the ending inventory of the one period is the beginning inventory for the next period, management already knows the cost of the beginning inventory. Companies record purchases, purchase discounts, purchase returns and allowances, and transportation-in throughout the period. Therefore, management needs to determine only the cost of the ending inventory at the end of the period in order to calculate cost of goods sold.
Cost of goods sold is the inventory cost to the seller of the goods sold to customers. Cost of Goods Sold is an EXPENSE item with a normal debit balance (debit to increase and credit to decrease). Even though we do not see the word Expense this in fact is an expense item found on the Income Statement as a reduction to Revenue.
Accountants must have accurate merchandise inventory figures to calculate cost of goods sold. Accountants use two basic methods for determining the amount of merchandise inventory—perpetual inventory procedure and periodic inventory procedure.
18. Sales is an account title used to describe goods or merchandise sold by a business. What nature of business uses sales? A. Servicing B. Merchandising C. Barber shopD. Both servicing and merchandising
Answer:
B
Explanation:
merchandising because it is selling a goods and merchandise in a business
19. explain briefly the accrual basis of accounting how will income and expenses be recognized under this principles for service merchandising and manufacturing business
Answer:
The accrual basis of accounting recognizes revenues when earned (a product is sold or a service has been performed), regardless of when cash is received. Expenses are recognized as incurred, whether or not cash has been paid out. For instance, assume a company performs services for a customer on account.
20. what distinguishes a merchandising business from a service business?
Answer:
Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.
Explanation:
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Answer:
Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.
21. Differentiate service accounting and merchandising accounting?
Answer:
Service accounting performs preparing income tax returns, performing audit and asset services, and even doing bookkeeping work to earn revenue while merchandising accounting is having revenue by merchandise itself, that should be debited to the inventory account and credited to cash or accounts payable, depending on how the merchandise was paid for.
22. example of merchandising business
Merchandise- buy and sell/wholesale
Ex.
Grocery stores,
gasoline stations,....
23. Determine the specific account title of the following service and merchandising business term below. Rewrite your answer inside the boxRevenuesExpenses accrualService business
Answer:
Determine the specific account title of the following service and merchandising business term below. Rewrite your answer inside the box
Revenues
Expenses accrual
Service business
24. g busthose Exercise 9-2: True or false. Write the word "True" if thestatement is correct and "False" if the statement is incorrect.ndising1. A merchandising business has more assets and liabilities thana service businessncome 2. Information in subsidiary ledgers may come from specialjournals or the general journalbenses 3. The work sheet can facilitate the preparation of financialles for statements and other steps in the accounting cycle.4. The income statement of a merchandising business includesa separate line for gross profit but not net income.ypical 5. The adjusting entry to set up ending merchandise inventorym that involves a credit to Income Summary account.6. Paying freight on merchandise sold increases the businessancial total assets.firma 7. The purchase of merchandise will increase cost of goods soldUnder a periodic inventory system, regardless of whether the purchase was made on cash basis or on account
Answer:
1.TRUE
2.TRUE
3.FALSE
4.TRUE
5.TRUE
6.FALSE
7.FALSE
25. Is there any difference in the recording of transactions in the book of accounts between services-oriented business and Merchandising?
Answer:
There is a difference in recording transactions in the book of accounts between service-oriented and merchandising business. These are what they sell, their typical financial transactions, their operating cycles, and how it is translated into financial statements.
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26. Bookstore merchandising accounting transactions
Answer:
Need po ba nito ng definition??
Explanation:
Here it is :
Transactions and subsequent journal entries for merchandise purchases are recognized using a perpetual inventory system. The periodic inventory system recognition of these example transactions and corresponding journal entries.
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27. This includes merchandising accounting, bookkeeping, typewriting, stenography, salesmanship, and business administration.
Answer:
Business art
Explanation:
Business Art - This includes merchandising, accounting, bookkeeping, typewriting, stenography, salesmanship, and business administration.
28. what distinguishes a merchandising business from service business?
Answer:
merchandising business is a service business in the whole world
29. accounting is a merchandising activitytrue or false?
Answer:
false
Explanation:
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30. 10. Which of the following is an element or account title in merchandising business?A SalesB. Professional FeesC. Service RevenueD. Consulting Revenues
Answer:
A Sales
Step-by-step explanation:
The merchandising business will include the following account titles and amount: accounts receivable, merchandise inventory, accounts payable, sales tax and purchases.
