m中山大學管理學院 会导经sH00 F BUSINESS SUN YAT-SEN UNIVERSITY Lesson 6 Accounting for Merchandising Activities M ask team of NJADAWIEAMLAJAVNAVA School of Business, Sun Yat-gen University
Lesson 6 Accounting for Merchandising Activities Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University
Outline o Merchandising activities Operating cycle of merchandising companles o Merchandising cost accounts ◆ Inventory systems 4 Merchandise purchases Sales transactions Adjusting and closing entries Task Team of FUNDAMEnTAL ACCOUNTING Business School. Sun Yat sen University
2 Outline t Merchandising activities t Operating cycle of merchandising companies t Merchandising cost accounts t Inventory systems t Merchandise purchases t Sales transactions t Adjusting and closing entries
Introduction Q Scandals in stock market occur now and then Among them, financial frauds or income manipulation are common, Income manipulation typically starts from making up sales revenues as well as purchases, for example, Guang Xia (Yinchuan). Q In this lesson you are required to think about Why these income statement numbers are so important? How they are recorded in accounting system? Task Team of FUNDAMEnTAL ACCOUNTING Business School. Sun Yat sen University 3
3 Introduction t Scandals in stock market occur now and then. Among them, financial frauds or income manipulation are common. Income manipulation typically starts from making up sales revenues as well as purchases, for example, GuangXia (Yinchuan). t In this lesson you are required to think about, tWhy these income statement numbers are so important? tHow they are recorded in accounting system?
Merchandising Activities Merchandising Companies Manufacturer Wholesaler Retailer Customer Task Team of FUNDAMEnTAL ACCOUNTING Business School. Sun Yat sen University
4 Merchandising Activities
Reporting Financial Performance Q Service organizations sell time to earn revenue. I Examples: accounting firms, law firms, and plumbing services Revenues Expenses Net corne Task Team of FUNDAMEnTAL ACCOUNTING Business School. Sun Yat sen University 5
5 Reporting Financial Performance