1. Describe merchandising activities and identify income components for a merchandising company.
2. Identify and explain the inventory asset and cost flows of a merchandising company.
3. Compute the acid test ratio and explain its use to assess liquidity.
4. Compute the gross margin ratio and explain its use to assess profitability.
5. Analyze and record transactions for merchandise purchases using a perpetual system.
6. Analyze and record transactions for merchandise sales using a perpetual system.
7. Prepare adjustments and close accounts for a merchandising company.
8. Define and prepare multiple step and single step income statements.
9. Record and compare merchandising transactions using both periodic and perpetual inventory systems.