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john bentley is the chief financial officer for world auto parts corporation the company buys approximately usd 500 million of auto parts every year
q example of income statement of a merchandising firmto recapitulate the more important relationships in the income statement of a merchandising firm
q define non-operating revenuesnon-operating revenues or other revenues and non-operating expenses or other expenses are revenues and expenses not
q define operating expensesoperating expenses for a merchandising company are those expenses other than cost of goods sold incurred in the usual
q explain about cost of goods soldcost of goods sold is the main expense in merchandising companies note the cost of goods sold segment of the
q what is operating revenuesoperating revenues are the revenues generated by the main activities of the business- generally the sale of products or
q analyzing how well the company is performingthe classified income statement illustrates important relationships that help in analyzing how well the
q explain about classified income statementan unclassified income statement has merely two categories revenues and expenses in contrast a classified
q explain merchandise in transitmerchandise in transit is merchandise in the hands of a shipment company on the date of a physical inventory as
q what do you mean by consigned goodsfob destination freight collect - seller acquires freight charges and buyer initially pays freight charges buyer
q explain fob shipping point freight collectfob shipping point freight collect - buyer both initially pays and incurs the freight chargers the proper
q what is merchandise inventorymerchandise inventory is the cost of goods on hand in addition to available for sale at any given time to determine
q describe about adjunct accountthe transportation-in account files the inward freight costs of acquiring merchandise transportation-in is an adjunct
q what is passage of title in transpotationpassage of title is a term that point to the transfer of the legal ownership of goods title to the goods
q what is fob destinationfob destination signifies free on board at destination the seller ships the goods to their destination with no charge to the
q what is fob shipping pointfob shipping point signifies free on board at shipping point the buyer acquires all transportation costs after the
q explain about purchase returns and allowancespurchase returns and allowances a purchase return takes place when a buyer returns merchandise to a
q what is purchase discounts accountthe buyer records the purchase discount merely when the invoice is paid within the discount period and the
q illustrate periodic inventory procedurecompanies by means of periodic inventory procedure make no entries to the merchandise inventory account nor
q example of periodic inventory procedureperiodic inventory procedure merchandising companies selling small unit value merchandise such like nuts and
q example of perpetual inventory procedurethe perpetual inventory procedure companies use perpetual inventory procedure in a range of business
q what is periodic inventory procedurein the periodic inventory procedure the merchandise inventory account is updated periodically subsequent to a
q explain about perpetual inventory procedurewhen discussing inventory we require clarifying whether we are referring to the physical goods on hand
q example of sales cycle of companyfor several retailers a large percentage of their annual sales occur during the period from thanksgiving to
q seasonality in salesbased upon its operating record the company believes that its business is seasonal excluding the result of net sales new store