Merchandising Easy

Retailers and wholesalers are both considered merchandisers.

• True

• False

The steps in the accounting cycle are different for a merchandising company than for a service company.

• True

• False

Sales minus operating expenses equal gross profit.

• True

• False

Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs.

• True

• False

A periodic inventory system requires a detailed inventory record of inventory items.

• True

• False

Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs.

• True

• False

A periodic inventory system requires a detailed inventory record of inventory items.

• True

• False

Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller.

• True

• False

Freight terms of FOB Destination means that the seller pays the freight costs.

• True

• False

1. Sales revenues are earned during the period cash is collected from the buyer.

• True

• False