What is the difference between the periodic-inventory and perpetual-inventory me

Question

What is the difference between the periodic-inventory and perpetual-inventory methods?

Name two costs, in addition to the purchase price, that are added to merchandise inventory cost.

What will be the result to inventory values, cost of goods sold, and net income if the LIFO method is used during times of inflation?

When comparing financial ratios, it is important to make comparisons only within an industry or between like companies. Why might a retail store have a much higher accounts receivable turnover than a manufacturing company?

How is gross margin or gross profit calculated on a merchandizing company income statement?

If a retail store has a sale with everything listed at 30% off, and a rack of clothing is also marked as "an additional 20% off," what is the total discount offered?

What does 1/10, n/30 mean?

What cash control is compromised when the purchasing manager is one of the authorized check signers?

Name at least three out of the four documents that the accounting department should have access to in order to pay an invoice.

What item from the company’s records must be added to the bank balance when reconciling the bank statement?

Explanation / Answer

Solution:

The two cost that are added to the cost of merchandise are -

When merchandise is purchased and it has to be recorded in the books, the not only the purchase cost but as these two costs among many are added to the cost of the goods.

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