Exam Review

Please review all of your notes and class assignments and complete the review below.


Multiple Choice

Accounting Problems:

  • Bank Reconciliation and Journal Entries
  • Adjusting Entries (including depreciation)
  • Journal Entries for a Merchandising Business (know all the Source Documents and entries required)
  • Financial Statements (Income Statement for a Merchandising Business)


Completing the Accounting Cycle

Pages 323-325   Ex.4-6

Cash and Internal Controls

Page 354 Ex.3

Page 386 Ex.2

Accounting for a Merchandising Business

Pages 455-458 Ex.1,2,4

Page 459 Ex.5

Page 462 Ex.11

For Additional Practice and Review

Review all T/F & M/C questions at the end of each chapter, review the Chapter Highlights and Accounting Terms at the end of each chapter.


Accounting for a Merchandising Business

  • Purchases
  • Sales
  • Freight In

Questions You Should be Able to Answer:

What are the journal entries to record the purchase and sale of merchandise?

What is the formula to determine the Cost of Goods Sold in a periodic inventory system?

What is the Freight In account?

How is the merchandise inventory shown on both the income statement and balance sheet?

Additional Practice and Review:

Page 402 Exercise 2, 3 and 4

page 406 Exercise 1 and 3



Resources for the Holidays

If you are experiencing any difficulties during the holidays and need someone to reach out to, please use the following resources:

Kids Help Phone – 1-800-668-6868 or go to www.kidshelpphone.ca (available 24 hours a day)

Crisis Response Service – call (416) 410-8615 (available 7 days per week, 24 hours a day)

Tangerine Walk-In Counselling (Visit www.tangerinewalkin.com for clinic location & hours)

Rapport Family and Youth services (visit www.rapportyouth.com)

Have a safe and restful holiday on behalf of the NPSS Guidance Team.

Accounting for a Merchandising Business – Inventory


  • What is a merchandising business?
  • How is it different from a service business?


  • Wholesaler vs. Retailer
    What is inventory?
  • Why is it so critical?

Discussion: Two Aspects – BS (Current Asset) and IS (COGS)
Periodic vs. Perpetual inventory systems – The Inventory Cycle
What is COGS? – calculation and using the equation

Additional Review and Practice:

  1. Read 396-401, 404-406
  2. Complete Exercise 2-5 Page 402
  3. Questions 1-17 Page 401