Accounting- Chapter 6
What is the second FOB Shipping Point
Buyer pays the freight
The amount that was paid to purchase merchandise that has been sold to customers
Cost of Goods Sold
The seller pays for freight when goods are shipped
FOB Destination
The buyer pays for freight when goods are shipped
FOB Shipping Point
Service businesses purchase goods that they later sell to customers
False
The amount of revenue earned by selling merchandise less the amount originally paid to acquire the goods
Gross Profit
What is the only common thing that both multiple and single income statement shows?
Net income
The total amount of revenue earned by selling merchandise
Sales
Which accounts are used by both merchandising and service businesses?
Supplies Inventory Accounts Payable Rent Expense
What is the first FOB Destination
Title of the goods passes to the buyer when the goods are received
What is the first FOB Shipping Point
Title of the goods passes to the buyer when the goods are shipped
Both merchandising and service businesses usually include a Supplies Expense account in their accounting records.
True
Accounts payable is
a liability
Accounts receivable is
an asset
Merchandise inventory is
an asset
Cost of goods sold is an
expense
Sales is a
revenue
FOB Shipping Point means that
title to goods transfers from seller to buyer when the goods leave the seller's place of business.
Unsold goods that a business still holds
Merchandise Inventory
What is the second FOB Destination
Seller pays the freight
Sales
The total amount of revenue earned by selling merchandise
Merchandising businesses purchase goods that they later sell to customers
True
