The operating cycle for a merchandiser that sells only for cash moves from:
Accounts receivable to inventory to cash sales.
B. Accounts receivable to purchases of merchandise to inventory to cash sales.
C. Inventory to purchases of merchandise to cash sales.
D. Purchases of merchandise to inventory to accounts receivable to cash sales.
E. Purchases of merchandise to inventory to cash sales.
Beginning inventory plus net purchases is:
A. Ending inventory.
B. Cost of goods sold.
C. Shown on the balance sheet.
D. Merchandise (goods) available for sale.
E. Sales.
Merchandise inventory includes:
All goods in transit.
B. All goods on consignment.
C. Only damaged goods.
D. All goods owned by a company and held for sale.
E. Only non-damaged goods.
Goods in transit are included in a purchaser's inventory:
At any time during transit.
B. When the purchaser is responsible for paying freight charges.
C. When the supplier is responsible for freight charges.
D. After the half-way point between the buyer and seller.
E. If the goods are shipped FOB destination.