0
1 In comparing the accounts of a merchandising company with those of a service company what additional accounts would the merchandising company likely use assuming it employs a perpetual inventory?
Dajah0403
Cost of goods sold and Gross profit
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
How does income measurement differ between a merchandising company?
As you can see, in merchandising companies we have more special components of revenues and expenses than service companies. Besides, merchandising have two different systems periodic inventory system and perpetual inventory system. Each system has own way to count goods.
What is a difference between periodic inventory and perpetual inventory?
periodic takes place on an irregular schedule where perpetual is a constant state of inventory
Which inventory valuation model does not allow control of inventory by visual inspection?
Perpetual system Perpetual system
What is perpetual inventory?
a thing that goes on and on
What inventory system uses the merchandise inventory as an active account?
Perpetual
How does income measurement differ between a merchandising company?
As you can see, in merchandising companies we have more special components of revenues and expenses than service companies. Besides, merchandising have two different systems periodic inventory system and perpetual inventory system. Each system has own way to count goods.
What is a difference between periodic inventory and perpetual inventory?
periodic takes place on an irregular schedule where perpetual is a constant state of inventory
Which inventory valuation model does not allow control of inventory by visual inspection?
Perpetual system Perpetual system
Is best buy a perpetual or periodic inventory method?
perpetual
What is perpetual inventory?
a thing that goes on and on
Is a perpetual inventory system is an effective means of control over inventory?
no
What inventory system uses the merchandise inventory as an active account?
Perpetual
Is it necessary to take a physical inventory when using the perpetual inventory system?
Yes
In a perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting what?
inventory
An account used in the perpetual inventory system that is not used in the periodic inventory system is?
Purchases
When using a perpetual inventory system why are discounts credited to merchandise inventory?
The discounts reduce the cost of the merchandise inventory.
What is the meaning of Perpetual and periodic system of accounting?
Perpetual System is that system in which company continuously updates the value of inventory while in periodic system inventory valuation is done only for closing inventory when company done physical inventory calculation.
