Professional Documents
Culture Documents
Management 1
Module 11:
Accounting Cycle of a Merchandising Business
I
What I Need to Know
This module was designed and written with you in mind. It is here to help
you master the Accounting Cycle of a Merchandising Business. The scope of
this module permits it to be used in many different learning situations. The
language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the
textbook you are now using.
Directions: Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
10. Statement 1: The accounting cycle for a service business is the same
with that of a merchandising business.
Statement 2: The major difference of the operating cycle of a
merchandising business and a service company is the storing of
inventory.
a. Statement 1 is true; statement 2 is false.
b. Statement 1 is false; statement 2 is true.
c. Both statements are true.
d. Both statements are false.
Lesson
Nature of Transactions of a
1 Merchandising Business
What’s In
Analyzing
Transactions
5. ? Journalizing
Post Closing
Trial Balance 1. ?
ACCOUNTING
CYCLE
4. ? Trial Balance
Financial
Statements
Preparation
2. ?
3. ?
Notes to the Teacher
The accounting cycle for a merchandising business is the
same with that of a service business.
What’s New
What is It
Buy
Merchandise
Collect
Sell
Customer
Merchandise
Accounts
Bill
Customers
Crossword Puzzle. Read the clues below and fill in the correct answer.
Across: Down:
2. amount of merchandise sold by 1. 2/10, n/30
the business for a given period 3. item bought by a business for the
4. FOB Shipping Point, FOB purpose of reselling it
Destination 5. cost of goods sold is deducted
6. discount claimed by the buyer from sales revenue
7. primary source of revenue in 8. trade discount, cash discount
merchandising business
9. goods available for sale by the
business for a particular accounting
period
What I Have Learned
DEFINITION CHARACTERISTICS
MERCHANDISE
BUSINESS
EXAMPLES NON-EXAMPLES
Notes to the Teacher
The Frayer Model is a graphic organizer used for word
analysis that prompts students to think about and describe
the meaning of a word or concept.
What I Can Do
Assessment
True or False. Write true if the statement is correct, otherwise, false on the
space before each item.
_____ 8. Cost of goods sold is deducted from gross profit to get the net
income or net loss for the period of merchandising business.