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- 1. Multiple Choice
The type of business that buys and sells goods.
Manufacturing
Merchandising
Finance
Infrastructure
Service
- 2. Fill in the Blank
_____ account is used when merchandise are sold to customers. (account title)
- 3. Fill in the Blank
_____ account that represents the amount of goods or merchandise bought by the business from suppliers. (account title)
- 4. Multiple Choice
These are goods purchased that remains unsold at the end of the accounting period.
Supplies
Inventory
Stock
Raw materials
- 5. Multiple Choice
It is a reduction from the selling price in order to promote sale of the merchandise.
Cash discount
Trade discount
Returns
Allowances
- 6. Multiple Choice
It is reduction from the price of the goods for prompt payment of the account.
Cash discount
Trade discount
Returns
Allowances
- 7. Fill in the Blank
___ goods are already shipped by the seller but not yet received by the buyer.
- 8. Fill in the Blank
What is the meaning of F.O.B.?
- 9. Multiple Choice
In this inventory system, the business immediately adjusts the inventory account every time there is purchase and sale transaction.
Perpetual
Periodic
Manufacturing
Merchandising
- 10. Fill in the Blank
____ is the difference between the net sales and cost of sales.
- 11. Fill in the Blank
___ is the product of deducting the purchases returns and allowances and purchases discounts from the net sales and adding the transportation in.
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