201 Ole Miss Final Exams Questions And Answers 100% Verifed Answers A.docx

How do you calculate COGS for a merchandiser? {Ans: using a perpetual system OR periodic inventory system}How do we determine what items to count in inventory? {Ans: determining cost of inventory requires cost of expenditures necessary, directly or indirectly, to bring into a salable condition and location}What is depreciation? {Ans: the process of allocating the cost of a plant asset to expense in the accounting periods benefitting from its use}What is the revenue recognition principle? {Ans: provides guidance on when a company must recognize revenue}How do you calculate semiannual interest paid to bondholders? {Ans: if a company issues a $1,000, 8% bond paying interest semiannually it pays annual interest of $80 (8% x $1,000) in 2 semiannual payments, they payments would equal $40 (80/2)}How does a merchandiser record the sale of merchandise? {Ans: debit accounts receivable credit sales debit COGS credit merchandise inventory}