Financial Accounting: E5-1 Mr. Wellington has prepared the following list of statements

Financial Accounting
E5-1
Mr. Wellington has prepared the following list of statements about service companies and merchandisers.Instructions
Identify each statement as true or false.
Measuring net income for a merchandiser is conceptually the same as for a service company.
For a merchandiser, sales less operating expenses is called gross profit.
For a merchandiser, the primary source of revenues is the sale of inventory.
Sales salaries is an example of an operating expense.
The operating cycle of a merchandiser is the same as that of a service company.
In a perpetual inventory system, no detailed inventory records of goods on hand are maintained.
In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period.
A periodic inventory system provides better control over inventories than a perpetual system.
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