Mcgraw Hill Chapter 4

Complete the following statement. Merchandise inventory that is still available for sale is considered a(n) ________ (asset/expense/revenue) and is reported on the ____________ (balance sheet/income statement) and merchandise that is sold during the period is considered a(n) _______ (asset/expense/liability) and reported on the ____________ (balance sheet/income statement).

1. asset2. balance sheet3. expense4. income statement

Which statement below correctly explains what merchandise inventory is?

Merchandise inventory is an asset reported on the balance sheet and contains the cost of products purchased for sale. 貸借対照表に報告される資産であり、販売のために購入した製品のコストである。

How do you compute net income for a merchandiser?

Net sales - cost of goods sold - other expenses.

Which of the statements below are correct regarding cost of goods sold?

The cost of goods sold is the expense of buying and preparing merchandise. 売価額＝商品の原価と商品にかかる額