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Merchandising Company: Definition, Activities & Income Components

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

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

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1. Janice runs a ski shop and is finalizing her reports for the month of May. At the start of the month, her merchandise inventory stood at $10,300. She made $14,600 in inventory purchases during the month and by the end of May her merchandise inventory stood at $11,700. What was her cost of goods sold for this period?

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

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About This Quiz & Worksheet

Some questions on this quiz and worksheet will provide you with a definition related to merchandising. You will need to then match this given definition with the correct term. The questions will revolve around terms like wholesale companies and purchasing.

Quiz & Worksheet Goals

The quiz and worksheet will test you on the following:

  • Functions of wholesale companies
  • Definition of purchasing
  • Assumptions of FIFO
  • Perpetual types of inventory systems
  • Formula for calculating net income

Skills Practiced

  • Interpreting information - verify you can read information regarding the functions of wholesale companies and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about the definition of purchasing
  • Reading comprehension - ensure that you draw the most important information from the related lesson on merchandising companies

Additional Learning

If you want to deepen your comprehension of this subject, then read the accompanying lesson called Merchandising Company: Definition, Activities & Income Components. This lesson will help you:

  • Understand what a merchandising company is
  • Identify the two types of merchandisers
  • Describe the activities involved in merchandising
  • Explain how their inventory systems are measured and reported
  • Explore the FIFO and LIFO methods that determine an inventory's value
  • Appreciate how merchandising companies report their income
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