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OAE: Merchandising & Inventory in Marketing Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What concept states that inventory is valued at the lower of the total cost of purchasing the material or the current market replacement cost?'

Question 2 2. Why is inventory valuation used?

Question 3 3. Which of the following types of merchandising companies buys items in bulk and resells them to retailers or other wholesalers?

Question 4 4. Which accounting term is used only to record the purchase cost of items that are intended to be resold?

Question 5 5. If the purchasing manager of The Tire Factory pays for raw materials with a one-hundred-dollar bill, which of the following accounts are debited?

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Question 6 6. Which type of inventory system requires closing entries?

Question 7 7. The periodic inventory system uses which accounting system to record acquisition of inventory related items?

Question 8 8. Shazam Electronics is a major retailer specializing in a large variety of computer chips. All of the chips have to be stored at a specific temperature, which is a significant expense to Shazam's monthly electric bill. Which of the following categories does this expense refer to?

Question 9 9. What is the cost of moving merchandise from one place to another called?

Question 10 10. The business that owns goods placed on consignment is called what?

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Question 11 11. What are items that are acquired by a distributor for the purpose of resale to a third party called?

Question 12 12. What do we call items that are taken from one business to another to be sold on a commission basis?

Question 13 13. Which inventory system records inventory at specific points in time?

Question 14 14. Market Ceiling is the same as what?

Question 15 15. What do we call items that have been ordered by a business, but have not yet been received?

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Question 16 16. Which of the following are discounts offered to customers in exchange for paying their bill within a given time frame?

Question 17 17. If the current market price of an item falls between the market ceiling and the market floor, what price is used to value inventory?

Question 18 18. NRV is calculated by subtracting which of the following from the sales price of an item?

Question 19 19. Which of the following is an entry made on the left side of an account that increases the balance in an asset account and decreases the balance in liability and equity accounts?

Question 20 20.

Which of the following terms fits this definition?

For every transaction that occurs in a business at least two accounts are affected.

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Question 21 21. The return that you would expect to get on an item after the item has been sold and the cost of selling that item has been subtracted is called what?

Question 22 22. Which of the following inventory reporting methods assumes that the first items added into inventory are the first items sold?

Question 23 23. The _____ refers to the total dollar amount a business paid for the products it sold.

Question 24 24. Helen does not have a lot of staff but has a great point-of-sales system that automatically registers the sale of the item and adjusts the inventory. Why would she use a perpetual inventory system?

Question 25 25. Which goods in transit are counted in the merchandise inventory of the buyer as soon as the items are shipped?

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Question 26 26. Which accounting term refers to buying items that are meant to be resold to customers?

Question 27 27. Which of the following accounting terms is a discount given by a merchant to a supplier for paying invoices on time?

Question 28 28. Which of the following is a costing method that is used to track cost specific and identifiable inventory items that are either in or out of stock?

Question 29 29. What is the formula for calculating net income?

Question 30 30. When an inventory purchase is paid for with cash, what account is credited?

OAE: Merchandising & Inventory in Marketing Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Ohio Assessments for Educators - Marketing (026): Practice & Study Guide  /  Business Courses
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